Conventional mortgage loans are also known as a Fannie Mae or Freddie Mac loans. The guidelines and credit requirements are established by either Fannie Mae or Freddie Mac. Generally, the credit requirements for this program type are a bit more stringent than a government loan.   These are the standard home loans but can be customized to fit your needs, ever thought of an 18-year mortgage?  Or a low, down payment program that doesn’t include private mortgage insurance?  There are hundreds of ways to utilize this program to fit you, not fit you in a box.

This may be a good choice if you plan to stay in your home for seven years or longer. If you plan to move within seven years, then adjustable-rate loans are usually cheaper. As a rule of thumb, it may be harder to qualify for fixed-rate mortgage loans than for adjustable-rate loans.

When mortgage interest rates are low, fixed-rate loans are generally not that much more expensive than adjustable-rate mortgage loans. Fixed-rate loans may be a better deal in the long run, because you can lock in the rate for the life of your loan.

Right now  mortgage rates are at a record low

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Types of Loans that can have a Conventional Conforming mortgage loan

Generally any home loan can have the option for a 30 year fixed rate mortgage. Find some typical loan uses below.

New Home

New Home Loan at basic interest rates from Gem Home Loan Company. You can apply online and check your eligibility and easy EMI. Fast Approval for your new home loan.

Home Renovation

A home conversion loan is a scheme for those who have already taken a housing loan. This loan follow some rules and regulations.It is a part of loan.

Land Purchase

Gem Home Loans offers home loan for land purchase to make your dream home. You can compare home loan rates with our compare loan table. Apply online for Home Loan.

Home Conversion

Get instant approval for renovation your home. Gem Home Loans offers home improvement loans. It is with basic rate and flexible EMI repayment.For more detail you can check our loan products.

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Is a Conventional Conforming Loan mortgage right for you?

If you’re borrowing for a home, consider a conforming loan. Conforming loans can come with a lower interest rate, plus the peace of mind of knowing your lender meets Fannie and Freddie guidelines.

Caps on borrowing make it tough to buy a home that exceeds conforming loan limits, and qualifying requirements are arguably stricter than those for an FHA, VA or USDA mortgage — so not everyone can get a conforming loan. Requirements and loan terms vary by lender, so be sure to shop around to find the right loan for you.

Advantages of a 30-year Fixed rate mortgage?

Payment stability at what is usually the lowest payment available for a fixed-rate mortgage. You can enjoy lower payments than a 20- or 15-year fixed rate mortgage. but you also retain the ability to prepay your loan, shortening the ultimate term and saving you interest cost.

Disadvantages of a 30-year Fixed rate mortgage?

Over a 30-year term you’ll pay less money each month, but you’ll also make payments for twice as long and pay more in interest over the life of the loan. The interest rate on a 15-year mortgage is lower and you’re paying off the principal faster, so you’ll pay a lot less in interest in the long run.

Who can qualify?

To qualify for a conforming loan, you’ll need to meet specific requirements. Those requirements vary based on whether you’re buying or refinancing a loan for a primary home, a secondary home or an investment property.

Qualifications for Conventional Conforming Loans

While Fannie Mae and Freddie Mac set guidelines that lenders must obey for conforming loans, lenders have leeway to set their own stricter standards. This means some lenders will be choosier about whom they lend to than others, and some lenders will charge higher or lower interest rates than others.

There was a time when getting a conventional loan required a 20% down payment. Because borrowers who meet this requirement only have to finance 80% of the home’s value, it’s often referred to as an “80/20 conventional loan.” But conventional loan down payment requirements have since become more flexible.

3% DOWN PAYMENT

HomeReady and Home Possible are conventional mortgage options that allow down payments as low as 3% — sometimes referred to as “3 down conventional loans.” If you qualify for a 3% down payment through one of these programs, you’ll need to finance the other 97%. That’s why you may hear them referred to as “conventional 97 loans.”

5% DOWN PAYMENT

Borrowers with lower credit scores might be required to make a down payment of 5% or more to get a conventional loan, meaning they’d need to finance 95% of the home’s value. This is sometimes referred to as a “5 down conventional loan” or a “conventional 95 mortgage.”

The key factors that determine if you can qualify include:

Your loan-to-value ratio

This refers to the amount you borrow versus the value of your home. If you have an 80% loan-to-value ratio, you’d borrow no more than 80% of what your home is worth. The lower your down payment, the higher your loan-to-value ratio.

Credit Scores

Higher credit scores mean you’ll stand a greater chance of being approved, even with a low down payment. Your reserves: For some types of loans, you’re required to have at least six months of assets in reserve.

Your debt-to-income ratio

This is the total amount of monthly debt payments you have, relative to your monthly gross income. It includes your mortgage payment.

3% DOWN PAYMENT

HomeReady and Home Possible are conventional mortgage options that allow down payments as low as 3% — sometimes referred to as “3 down conventional loans.” If you qualify for a 3% down payment through one of these programs, you’ll need to finance the other 97%. That’s why you may hear them referred to as “conventional 97 loans.”

5% DOWN PAYMENT

Borrowers with lower credit scores might be required to make a down payment of 5% or more to get a conventional loan, meaning they’d need to finance 95% of the home’s value. This is sometimes referred to as a “5 down conventional loan” or a “conventional 95 mortgage.”

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