Conventional Loans

Looking for a property beyond the FHA loan limit? A conventional loan may be the way to go. Contact one of our loan officers to get started, today!

Conventional Loans

excited family after purhcasing a home with a jumbo loan

Knowing the different loan options available to you in Los Angeles will help you avoid wasting time and money when it comes time qualify for a mortgage loan and purchase a property. Perhaps the most common loan program available is a conventional mortgage. A conventional mortgage is a loan that is not guaranteed or insured by the federal government.

Benefits of a Conventional Mortgage

  • Borrowers with good credit typically can secure lower interest rates
  • Access to flexible mortgage insurance options
  • Fewer fees and penalties
  • Flexible loan terms

Conventional Mortgage Home Loans

Freddie Mac and Fannie Mae set guidelines for what qualifies as a conforming and non-conforming loan. The limit to the loan amount that is considered conventional is based on the county and state where the property is located. If the loan amount is under the set limit defined by Freddie Mac and Fannie May, then it is considered a conforming loan. If they are above those limits, they are categorized as non-conforming loans. You can find out the limits in your area by clicking here.

If your credit and income qualify and you want to purchase a new home in Pasadena, a conventional loan may be the right choice for you. Conforming loans require a down payment as little as 3% for a fixed-rate term or 10% for an adjustable rate.

Conventional loans come in two types, fixed-rate or adjustable-rate. Fixed-rate mortgages give you the benefit of knowing that your interest rate will be the same for the entire duration of the loan. Adjustable-rate mortgages give the borrower an introductory rate for a fixed period and, afterward, will face periodic adjustments according to a specific benchmark.

If the loan amount, credit, and income qualify you for a conventional loan and you want to purchase a new home, this loan type may be the best choice. Conforming loans require a down payment of as little as 3% down for a fixed-rate conventional loan and 10% down for an adjustable rate.

Restrictions apply. See what you qualify for today!

Contact Us To Discuss Your Loan Options, Today!

We’re looking forward to helping you find the best loan options for your specific needs