What is a Conventional Loan?

A conventional mortgage loan is one that is financed through a private mortgage lender such as Carrington Mortgage Services.  Conventional loans usually offer the lowest interest rates and most favorable loan terms. A fixed rate loan protects the borrower from increases in interest rates so your payment remains stable for the life of the loan. The most typical conventional loan is a 30 year fixed rate mortgage.

A conventional home mortgage loan is not insured by or offered through the Federal Housing Administration (FHA); the U.S. Department of Agriculture (USDA); or through the Veterans’ Administration (VA).

Is a Conventional Loan Right For Me?

Whether you are a first-time homebuyer or looking to move into your next home a conventional loan is worth looking into. Here are some reasons why it might be right for you.

  • Fixed, low rates
  • Low debt to income ratio
  • Sizable down payment (20% or more)
  • Lower private mortgage insurance
  • Credit scores ≥ 620

What Type of Conventional Loans Does Carrington offer?

  • 30 year fixed rate
    • Monthly principal and interest payment never changes
    • Safety and security in knowing what your payment will be in the future
    • Purchase, Rate/Term and cash-out refinances
  • 15 year fixed rate
    • Monthly principal and interest payment never changes
    • Safety and security in knowing what your payment will be in the future
    • The loan will be paid off in half the time as a 30 year fixed rate loan
    • While the monthly payment is higher than a 30 year fixed rate loan, the interest rate is typically less
    • Purchase, Rate/Term and cash-out refinances
  • Home Possible
    • Down payment as low as 5% of the purchase price
    • One to four unit residential condos, manufactured homes or planned-unit developments**
    • 15 and 30-year Fixed rate mortgages available
    • No cash-out refinancing options available*
    • Gifts, grants, and Affordable Seconds are permitted as a source of funds for down payment and closing costs (restrictions apply)
    • Must be the borrower's primary residence
  • Home Possible Advantage
    • Similar to Home Possible but only 3% down
    • One unit properties only (no manufactured homes)
    • Fixed rate mortgages
    • Must be the borrower's primary residence

How Do I Get a Conventional Loan?

Once you have decided a conventional loan will fit you best, contact us and speak with a Carrington loan officer. We will be happy to answer any questions and walk you through the application process. Call (888) 267-0584 or click here to start now.

 

*Min 620 FICO; Mortgage Insurance required with Loan To Value (LTV) over 80%; Homeownership education required
**Restrictions apply. Ask your Loan Officer for details