A conventional mortgage is a type of loan that meets certain criteria set our by Fannie Mae and Freddie Mac. These mortgages are not guaranteed by the government like FHA, VA, and USDA mortgages, but, they do require mortgage insurance if borrowing over 80% of the value of the house. Since they all meet the criteria set forth by the GSE’s (Fannie and Freddie) institutions can buy and sell them easily in the bond market thereby making cash available to make more loans. This process is why the rates and terms available on Conventional Mortgages are so good compared to internal products offered by banks.
But what can you do with a conventional loan?
Most people know that they are available for the purchase or refinance of a house that you intend to live in, but, there are many other things you can do using this low cost financing.
- Purchase a home to live in
Borrow up to 97% of the purchase price
- Purchase an investment
Looking for an investment? Up to 4 unit properties can be financed up to 85% of the purchase price
- Refinance a home to lower your interest rate
Want a lower rate? Use a conventional loan to lower your rate, payment, or get out of PMI
- Refinance a home for cash out
Need cash for college, to pay off credit cards, or any other purpose? Borrow up to 80% of the value of your house
- Refinance to a different term
Want to pay off your house faster? Lower your term to a 15, 10, or even lower term. Want to take more time and lower your payment? Go from a 15 to a 30.
- Refinance to remove a borrower
Need to remove a co borrower? A parent? An ex spouse?
- Renovate a home
Want to do some minor updating or major upgrades? Renovation loans can help you do that.
- Build a home
Our one time close construction loan can get your house built with only one closing. No market risk while building your dream home.
When you need financing for anything to do with your home or investment property, look to First Assured Mortgage in Lawrence, KS. We are committed to providing our customers the very best rates and terms available from the very best lenders available in the market.