Conventional Home Mortgage Loans
A Conventional loan is not insured by any government program and are the most common type of mortgage. They differ from Federal Housing Administration (FHA loans) and U.S. Department of Veteran Affairs (VA) loans which are insured by the government. Conforming conventional loans follow the loan amount guidelines set by Fannie Mae and Freddie Mac.
Benefits of Conventional Home Loans
Compared to government-backed products, conventional home loans are more flexible in their terms and have fewer restrictions. For instance, conventional home loan borrowers can avoid the cost of private mortgage insurance (PMI) when they make the standard 20% down payment. Or they can choose to pay for PMI and make a smaller down payment. Borrowers with a stable job, income and good credit are great candidates for conventional home loans.
Other advantages to conventional home loans include:
- Low down payment
- Good interest rate for borrowers with good credit
- Flexible terms (length)
- Options for Owner Occupied (primary residence), second home and Investment property.
- Both purchase or refinance transactions
- PMI options include; Financed, Single payment or Lender Paid
Minimum Down Payment
The minimum down payment for a Conventional home loan is 3% of the purchase price. The down payment can come from a gift or any documented asset.
The maximum loan limits for Kansas and Missouri for 2017 is:
- $424,100 for a one-family property
- $543,000 for a two-family property
- $656,350 for a three-family property
- $815,650 for a four-family property
We offer several home loan options.
Fixed Rate Home Loans
Metropolitan Mortgage offers loan rates for 30-year, 20-year, 15-year and 10-year fixed rate options. All options offer the same interest rate stability, but the shorter the term the higher the monthly mortgage payments, giving you a faster way to build up home equity. You can use this higher equity as a down payment when you move to your next home.
An adjustable rate mortgage (ARM) lets homeowners pay a low introductory interest rate for the first few years. These type of loans are best for shorter terms of ownership.
Have Questions? Contact Us online or call 913.642.8300.