Conventional Loans

Conventional loans are the most common type of loan and provide you the ability to have a fixed rate mortgage for 15, 20, 30 or 40 years.  Adjustable Rate Mortgages (ARM’s) are also available.  These can be advantageous if rates are expected to fall or if you plan to be in your home a short time.  Conventional loans can be used for: primary home, 2nd home and investment properties.

Minimum down payment requirements vary from 0% to 5% down.  Mortgage insurance may be required if you borrow more than 80% of the purchase price.  A way to avoid mortgage insurance is by combining two loans so the first mortgage loan is 80% of the purchase price.  These loan structures are call 80/20, 80/15/5 or 80/10/10 structures.

Jumbo Loans

Jumbo loans are loans above $417,000.  These loans are much like conventional loans, however, due to the larger loan amounts, these loans typically have slightly higher interest rates and varying down payment requirements.