Conventional Home Loans
Conventional mortgages are ideal for borrowers with good or excellent credit.
Conventional mortgages are standard, traditional home loans. They follow fairly conservative guidelines for:
Borrower credit scores – the better the score, the lower the rate will be!
Down payment options can vary up to as little as 3%. 20% or more down means no Mortgage Insurance!
Conventional mortgages generally have less paperwork and steps than FHA or VA mortgages.
Below we have listed the types of Conventional loans we offer:
Fixed Rate: A 30 year fixed rate mortgage is the most popular conventional mortgage. It offers the security of a fixed rate and fixed payment for the life of the loan. 15 year fixed rate loans are also a popular choice among borrowers who have been in their homes for a time and want to refinance and not add years to paying the loan. Thurston County loan limits are $510,400.
We have the flexibility of doing fixed rate loans for 8-30 years of amortization!
Fixed Rate Jumbo: This loan is a Non-Conforming Conventional loan because the loan amount is higher than county limits. In Thurston County a Jumbo Mortgage is for loan amounts above $510,400. The limits may be different for other counties so call us and talk to one of our Jumbo Loan Experts.
ARMs: Otherwise known as Adjustable Rate Mortgage loans. These loans offer an introductory rate for an initial term, then the rate will adjust regularly after that according to the index it is attached to. For example, a 3/1 ARM means the rate is fixed for the first 3 years and then it will adjust every 12 months after that. Common types of ARMs are 3/1, 5/1, 7/1, and 10/1. The key details for these loans are the Index, Margin and Adjustment period. These should be explained very clearly upfront.
First and Second Combo: This loan can help a borrower with less than 20% for a down payment take out a mortgage without requiring mortgage insurance. Comparing the payment on a 1st and 2nd combo with a single mortgage with mortgage insurance can determine whether this would be advantageous. There may be tax benefits as well and it should be discussed with your tax professional or CPA.
Our Loan Officers are excellent at explaining and helping our clients decide which Conventional Mortgage will be best suited for them and their circumstances and goals. Please don’t hesitate to call and speak to one of them today or fill out the form and we’ll call you!