Conventional Loan
Most common loan type, coordinated by Freddie Mac and Fannie Mae with the flexibility of private lenders.
Fast closing time
Primary, Secondary,
&
Investment properties
More options for terms
The “OG” of mortgage loans
When you think of mortgage loans - the first thing that comes to mind is likely known as a Conventional Loan.
It’s the most common financing type for a reason because they conform to the standards set by Fannie Mae and Freddie Mac, yet are serviced by private (non-government) lenders.
Why it's great:
Simpler process
Can be used for primary residence, 2nd homes, investment / rental properties
Available for *most residential properties
As little as 3% down (that’s $10,500 on a $350,000 house)
Higher credit scores = better rates
Lower closing costs
Fewer appraisal requirements
NO monthly mortgage insurance with as little as 3% down
Who it's great for:
Simpler process
Can be used for primary residence, 2nd homes, investment / rental properties
Available for *most residential properties
As little as 3% down (that’s $10,500 on a $350,000 house)
Higher credit scores = better rates
Lower closing costs
Fewer appraisal requirements
NO monthly mortgage insurance with as little as 3% down
Who it's great for:
Simpler process
Can be used for primary residence, 2nd homes, investment / rental properties
Available for *most residential properties
As little as 3% down (that’s $10,500 on a $350,000 house)
Higher credit scores = better rates
Lower closing costs
Fewer appraisal requirements
NO monthly mortgage insurance with as little as 3% down
Get started with one click!
1 • Start your application
We’ll give you some basic steps to get you on a good path for your situation.
Call us to talk or click here to get started on a brief survey.
2 • Personalize your plan
The best mortgage is customized based on your goals, your needs, and your budget.
We provide personalized options for you based on your preferences.
3 • Shop with confidence
You’ll be prepped and confident when it comes time to work with your realtor to find the perfect house for you.
“We cannot say enough good things about Midwest Family Lending and Charlie. He made the process of buying our first home easy, even in a crazy market. He was responsive, diligent, and such a pleasure to work with.
Five stars doesn't come close to what he should actually receive.
Anyone looking for a company/mortgage lender, this is it!”
—Aaron H.
Your Questions Answered:
How much $ will I need to purchase a house?
Some amount of money. :)
For a conventional loan, minimum down payment is 3% of purchase price.
When saving for a down payment, a good goal is at least 5% of your purchase price budget.
We always recommend planning for more when possible.
[See sample calculator below.]
Do I need to have 20% down?
Contrary to popular belief, conventional loans don’t require 20% down…they only require as little as 3% down.
What is Mortgage Insurance?
Mortgage insurance is different than homeowners insurance. Mortgage insurance, or more commonly referred to as PMI, was created to allow borrowers to put less than 20% down. If a home goes into foreclosure, mortgage insurance helps the system recover part of the loss.
Is mortgage insurance the same as homeowners insurance?
Not quite. Mortgage insurance is coverage for the mortgage payment. Homeowner’s insurance is coverage for your property.
Do I have to escrow property taxes and insurance?
Property taxes & home insurance are typically escrowed on loan files with less than 20% down. Including taxes & insurance as a part of an escrow account also helps borrowers have a consistent monthly pymt. Alternately home owners would need to remember to pay their property taxes each March & September (Iowa’s schedule…other states can/may have different schedules) and their annual homeowners insurance premium.
I already own a home - is conventional my only option for purchasing additional properties?
Existing homeowners can use Conventional, FHA or VA when looking at their refinance options. USDA loan holders can still utilize USDA as a possible refinance option.
Borrowers looking to purchase rental properties will typically need to consider conventional loans or a portfolio loan. Conventional loans need to be applied for and help in personal names, no LLC or other company setups can be used. Portfolio loans are an entirely different animal, rarely do they have fully fixed rate terms/amortizations. Portfolio loans are completely different and have no true consistency on rates/terms/amortizations/costs/etc.
If I don't qualify for a conventional loan does that mean I suck at life?
Many people think Conventional loans are the only option or the best option. We would suggest that the best loan for each borrower can only be confirmed by reviewing your current situation, budget, credit, etc…then we can find the right loan setup that accomplishes your goals in every way possible.
What about Jumbo Loans?
Jumbo loans are another type of loan that is a bit less consistent. When loan amounts are higher than the maximum loan amount set by Fannie Mae & Freddie Mac, Jumbo loans can be utilized. These loans typically need at least 10% down, many times 20% down. The loan rates/terms/etc. are also much more inconsistent from each institution.
Where can I qualify for a Conventional Loan?
Conventional Loans are available anywhere in the US. Team Chedester is licensed in Iowa, Nebraska, South Dakota. If you’re looking to purchase a home outside of these states - we’re happy to share like minded referrals to your mortgage needs.
“We cannot say enough good things about Midwest Family Lending and Charlie. He made the process of buying our first home easy, even in a crazy market. He was responsive, diligent, and such a pleasure to work with.
Five stars doesn't come close to what he should actually receive.
Anyone looking for a company/mortgage lender, this is it!”
—Aaron H.
This is your mortgage - you deserve to have a say in which option is best for you.
Once we review your information, we prepare a side-by-side comparison for your review. (Does anyone else do this for you? Didn’t think so.)
You’ve got options - and we help you know them and be confident in your decision.
Take the first step to your own custom spreadsheet by completing our quick survey.
**calculator is a tool and the pic is only a sample. Rates are not quotes nor reflect up-to-date information.
Not sure if conventional is right for you? No worries! We have lots of options.
As mortgage strategists, we customize your mortgage solution to your personal needs.
Take our 10 min survey to get started - we’ll handle the details.
