Conventional Purchase Loan Program

Does Your Income Make You Nervous About Buying a Home?

When it comes to securing a mortgage for your dream home, it’s essential to understand your options. Conventional loans, offered by CBM Mortgage, provide an attractive choice for those looking to embrace homeownership with a range of features and benefits. Let’s delve into the world of conventional loans and discover how they can make your homeownership dreams come true.

What Are Conventional Loans?

Conventional loans are a type of mortgage loan that stands apart from government-backed loans. Unlike Federal Housing Administration (FHA), U.S. Department of Veterans Affairs (VA), or U.S. Department of Agriculture (USDA) loans, conventional loans are not insured or guaranteed by any government agency. These loans are backed by private lenders, offering both flexibility and responsibility for borrowers.

Key Characteristics and Features of Conventional Loans

  • Credit Requirements: Conventional loans often come with stricter credit requirements compared to government-backed loans. Lenders typically expect borrowers to have a good to excellent credit history to qualify for the best interest rates and terms. A higher credit score can translate into lower interest rates, making homeownership more affordable.
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  • Down Payment: Unlike some government-backed loans that offer low or zero down payment options, conventional loans typically require a down payment. The minimum down payment amount can vary, but it’s common for lenders to ask for at least 5% to 20% of the home’s purchase price. However, some lenders may provide low down payment options, such as 3% down, for qualified borrowers, making homeownership more accessible.
  • Private Mortgage Insurance (PMI): If your down payment is less than 20% of the home’s purchase price, you’ll likely be required to pay for private mortgage insurance (PMI). PMI safeguards the lender in case you default on the loan. Once your loan-to-value ratio reaches 80% or less, you can typically request to have the PMI removed, reducing your monthly expenses.
  • Loan Limits: Conventional loans don’t have specific loan limits set by the government, but they are subject to conforming loan limits established by the Federal Housing Finance Agency (FHFA). These limits vary by location and are updated annually, providing flexibility to suit various markets and property values.
  • Interest Rates: Conventional loans offer competitive interest rates. The exact rate you receive will depend on various factors, including your credit score, down payment, loan term, and current market conditions. With conventional loans, you have the potential to secure favorable rates, resulting in cost savings over the life of your loan.
  • Flexibility: Conventional loans provide flexibility in terms of the types of properties you can finance. They can be used to purchase primary residences, second homes, and investment properties, giving you a wide array of options to explore.
  • Fixed and Adjustable Rates: Conventional loans are available in both fixed-rate and adjustable-rate mortgage (ARM) options. With a fixed-rate mortgage, your interest rate remains constant throughout the loan term, offering stability and predictability. On the other hand, an ARM has an initial fixed period before the rate can adjust periodically, potentially allowing for lower initial payments.
  • No Prepayment Penalty: Conventional loans don’t impose prepayment penalties. This means you have the freedom to pay off your loan early without incurring additional fees, empowering you to manage your finances more effectively.

Your Path to Homeownership Begins Here

Conventional loans are a popular choice for borrowers with strong credit profiles and the financial capacity to make a down payment. These loans offer competitive terms, a wide range of options, and the flexibility to finance various types of properties. Whether you’re aiming to purchase your dream home, invest in real estate, or secure a second residence, CBM Mortgage is here to guide you every step of the way.

With our experienced team of Home Loan Advisors, we’ll assess your unique financial situation, explore the best loan options, and provide expert guidance throughout the application process. At CBM Mortgage, we understand that the world of mortgages can be complex, and we’re here to simplify the journey, making your homeownership dreams a reality.

Unlock your path to homeownership with CBM Mortgage and conventional loans.

Please contact a CBM Mortgage representative to take the first step towards securing your dream home or begin an application online:

Additional terms and conditions apply. All approvals subject to underwriting guidelines.
Not all applicants will qualify. This is an advertisement and not a commitment to lend.