Conventional Home Loans
Whenever you apply for your home loan, you can opt for a conventional home loans Florida. The VA & FHA are Government-backed loans that are insured via the Federal government while private companies insure conventional home loans Florida. The conventional loan rates, fees & additional costs that are associated with them will change based on the mortgage lender.
Understanding How Conventional Home Loans Work
Though the conventional loan programs are not insured by the U.S Federal Government, they have to adhere to all the Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) guidelines. Very different from the loans that are federally insured, these conventional loans do not carry any guarantees for a lender in case the borrower defaults on payments.
Since there is no government insurance, these conventional loan programs pose a much higher risk to the lenders. Therefore, if you want to finance the purchase of your new home with a conventional home loan, you will have to meet much more stringent income and credit requirements, compared to properties financed via VA or FHA mortgage.
Lower Interest Rates
A majority of conventional loan programs require you to make the full loan repayment at a certain fixed interest rate over a 30year period. But some banking institutions may offer 45/50 year repayment options while 15-year mortgage options are also available. If you have a steady income and good credit & can afford the necessary down payment, conventional loan rates are much lower than those backed by the government.
This is also the reason why lenders are able to process all conventional loans much faster than the government-insured mortgages. Since you also have to pay a larger down payment for a conventional loan, it helps you in building equity much faster. If you are considering applying for a conventional loan in Florida, ensure that you are dealing with a credible and long-standing company like Mortgages Done Right Inc at (561) 777-7622.
We have highly-experienced and knowledgeable mortgage professionals in our team. When you approach them with any query or your loan requirement, you will be given all the important details and information about options that are available to you. Once you have opted for this loan, you will be provided full support, right through the form-filling and application process. For the most reliable home loans services, contact Mortgages Done Right Inc. at (561) 777-7622. You can us this website form for any queries you may have regarding Conventional Home Loans Florida.