Conventional Loans

 

Lower Rates with More Flexibility

A conventional mortgage refers to any loan that is not insured or guaranteed by the federal government, as opposed to government-insured loans including Federal Housing Administration (FHA)U.S. Department of Veteran Affairs (VA) and U.S. Department of Agriculture (USDA). Conventional mortgages (whether conforming or not) typically have a slightly higher down payment than government loans; however, this loan option normally provides more flexibility with fewer restrictions.

 

Conventional Highlights

If you have good credit and stable income, a conventional loan might be the right option for you since it offers:

  • Lower interest rates for borrowers with good credit

  • Flexible mortgage insurance options

  • Fewer penalties and fees

  • Flexible loan terms 

 

Conventional Loan Programs

 
Adjustable-Rate Mortgage

An adjustable-rate mortgage (ARM) is a loan term option with interest rates that can change periodically after the initial fixed-rate period. After this introductory period, monthly payments are susceptible to increases or decreases based on market fluctuations, which can also affect the monthly payment. An ARM could be the right choice for you if you plan on staying in your home for just a few years, you’re expecting a future pay increase, or the current interest rate on a fixed-rate mortgage is too high

 
Fixed-Rate Mortgage

Fixed-rate mortgages protect you against rising rates since the interest rate remains the same for the entire term of the loan. Plus, you have the option of selecting a 10, 15, 20, 25 or 30-year term. The main difference is the lower term options have higher monthly payments, which also means you are building home equity faster. Keep in mind you can use equity as a down payment for your next home or a future cash-out refinance. If you plan on staying in your home for a longer time frame, a fixed-rate mortgage could be the right solution for you.

 
Jumbo Mortgage

A jumbo loan, or non-conforming mortgage, allows you to purchase more expensive homes with a loan amount above the conforming limit set by the Federal Housing Finance Agency. In most areas of the country, the conventional conforming loan limit is $424,100; however, the limit is $625,500 in higher cost areas. If you have a low debt-to-income (DTI) ratio and a higher credit score, but you don’t have enough funds to bring the loan amount under the conforming limit, a jumbo loan might be the right option for you.

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(877) 699-0353 or

Email us: customerservice@fairwaymc.com

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Licensed by the Department of Business Oversight under the California Finance Lenders Law. Loans made or arranged pursuant to a California Finance Lenders Law License.  FIMC NMLS #2289

CA License #CA-DBO391030

Licensed Nevada Mortgage Lender NMLS #391030

NV License #58444

Licensed Colorado Mortgage Lender NMLS #391030

CO License #100039732

Matthew Stephen McClellan

Branch Manager

MMcClellan@FairwayMC.com

C: 303-551-5889

O: 702-854-1835

12231 S Eastern Ave Ste 130

Henderson, NV  89052

8480 E Orchard Rd, Suite 2100

Greenwood Village, CO 80111

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