Just What is a Conventional Home Loan?
A conventional home loan is ideal for a borrower who has a good credit score, the capital for a substantial down payment, and a stable income. Overall, financial stability is a must. Unlike other forms of loans and mortgages, the Federal Government does not insure a conventional home loan.
Other loan options are available for those who are less stable financially. These include USDA, VA, and FHA loans. These loans are ideal for first-time buyers or those with little capital to put into a down payment.
If you are looking for a home in Utah and think that a conventional loan is the ideal choice for you, call 801-957-0155 today to talk to one of our mortgage experts at America West Financial in Utah about your options!
Why Choose a Conventional Home Loan?
Conventional home loans can be acquired for both the purchase of a new home as well as refinancing. It can occasionally be more difficult to qualify for a conventional home loan because of the stringent financial requirements. A major benefit, however, is that the terms for these loans are generally more flexible, and there are far less restrictions than on a loan that is guaranteed by the government.
If you choose to take out a conventional home loan with America West Financial Home Loans, you will benefit from these perks:
- There are fewer regulations, significantly less paperwork, and they are easy to apply for.
- There are many different options for you to pick from.
- Flexible and customizable terms are available so that you can match your loan to your financial plans.
- Many different properties are eligible for conventional home loans, such as condominiums as well as both multi- and single-family houses.
- If you have the capital pay a down payment of a minimum of 20%, you are not required to hold mortgage insurance on your loan.
- Because a conventional home loan borrower is required to have good credit and financial stability, loan rates are likely to be lower than most.
Different Types of Conventional Home Loans
Conventional home loans come in two forms, adjustable rate and fixed-rate mortgages:
- Fixed-rate mortgage: For the life of the loan, the repayment rate of this type of loan remains constant. The most common terms consist of either 15 or 30 years. These payments are both stable and predictable with no change. Because the terms are stretched out, the monthly payments are fairly low. If you plan to keep your home for more than seven years, a fixed-rate mortgage is a great choice.
- Adjustable-rate mortgage: Unlike a fixed-rate loan, an adjustable-rate loan’s repayment rate changes over time. A fixed rate is in place for a preliminary amount of time, for usually about a year. In this initial time period, monthly payments are lower than a fixed-rate mortgage. After this time, however, monthly payments and interests rates both change and usually increase. This loan option is ideal for borrowers that do not plan to keep their home for a long time.
Conventional Home Loans: America West Financial in Utah
If you have financial stability and a good credit score, a conventional home loan is an ideal option for you. The rates are great and fees are low. Your down payment can be just as little as 3%, and you can cease carrying mortgage insurance once you have paid back 20% of your loan. Our experienced loan officers and staff are more than happy to make this process easy and enjoyable for you! We have more than 15 years of experience helping home buyers all over Utah.
Our mortgage experts at America West Financial in Utah are available to discuss your loan options at any time. If you are considering applying for a conventional home loan, you can contact America West Financial online to fill out our mortgage loan application. For more questions feel free to call us at 801-957-0155 today! Our experts are waiting to take your call and set you up with the best loan and rate for your financial situation, so feel free to contact us today with any questions you may have. We would love to hear from you!