Conventional Mortgage Loans

happy-family2In the past conventional loans were the only type of mortgage loan available. Not insured by the VA, FHA, or Rural Housing Service, these loans used to be offered by banks, credit unions, and savings and loan instituitions and the loans were held by these lenders until paid in full or foreclosed. A secondary market was created in the late 1930’s which allowed these lenders to sell their loans to secondary lenders to service.

Conventional mortgages can be either conforming or non-conforming. Conforming loans follow the guidelines, terms, and conditions of government-sponsored enterprises such as Fannie Mae and Freddy Mac which are stockholder-owned corporations. Non-conforming conventional loans typically don’t meet the requirements of these government-sponsored enterprises.

Conventional loans are available up to $424,100. These loans consist of 30, 20, and 15 year or ARM’s 3/1, 5/1, or 7/1. Typically with conventional loans you put down 5% or more. If you put down less than 20%, you will usually have to pay PMI (Private Mortgage Insurance). PMI is a percentage of your loan amount and depends on how much money you put down on the home.  What if I don’t want to pay PMI?  We have options for you as well and you don’t have to put down 20%.  Call me to find out how I can help you get rid of PMI.

Conventional loans are available for 2nd homes and investment property as well. Typically you have to put down 10-20% for these types of properties. As a local Atlanta Georgia mortgage lender, we underwrite convential loans in-house for better terms and faster approvals and closings. For the best conventional Georgia mortgage rates and smoothest transaction possible, contact me for your GA conventional mortgage loan.