If you’ve got a good handle on your finances, have excellent credit and are looking to buy a home without jumping through a lot of hoops, a conventional loan might be right for you. Learn about conventional mortgages below.
Conventional Home Loans
What is a Conventional Home Loan?
When most homebuyers think of home loans, they think of conventional home loans for primary residences such as the ones offered at Greater Nevada Mortgage. By far one of the most popular types of mortgages, conventional loans encompass most home loans not backed by government entities.
Offering quicker approval and generally better rates, these types of loans tend to be best suited to buyers with outstanding credit scores and low debt-to-income ratios. Remember: typically the higher your credit score, the lower your interest rate will be.
Conventional loans are also an excellent vehicle for refinancing an existing mortgage in order to lock in lower interest rates and better terms, as well as for those looking to borrow money to purchase an investment property.
Learn More about Our Conventional Loan Options
Fixed Rate Mortgages
Planning on living in your home for at least 5 to 7 years (or longer)? Enjoy peace of mind with a predictable, never-changing monthly payment.
Adjustable Rate Mortgages (ARM)
If you’re more like a tumbleweed and plan on living in your home for a shorter period, sit back and relax with a lower-than-average interest rate–at least for the introductory period.
Stay competitive in the hottest real estate markets with a jumbo loan that makes luxury home ownership possible–just be sure to have a sterling credit score.
If you’re fresh out of med school, this could very well be your most straightforward path to homeownership available.
What is the Difference Between a Conventional Home Loan and Other Loan Types?
It’s easy to confuse the wide variety of home loan programs out there. We’re here to clear things up for you, whether you’re a first-time homebuyer or a seasoned homeowner with multiple purchases under your belt.
Conventional Loans vs. VA Loans
Conventional loans can be used on primary homes, vacation homes and other investment properties, while VA loans are for primary homes only — and are built for those who have served or are serving in our nation’s armed forces. Typically, a VA loan does not require a down payment, while conventional loans can be obtained with as little as 3% down.
Conventional Loans vs. FHA Loans
FHA loans are backed by the United States government, while conventional loans are secured by individual lenders such as Greater Nevada Mortgage. Also, conventional loans usually require higher credit scores and larger down payments than FHA loans. With conventional loans, private mortgage insurance is required when the down payment is under 20%, whereas FHA loans require FHA mortgage insurance.
Conventional Loans vs. USDA Loans
USDA home loans are generally for rural housing, based on eligibility determined by the United States Department of Agriculture. These loans are built for lower-income earners in order to offer a lower interest rate than they might find with a conventional mortgage. In short, conventional loans are not insured by governmental agencies.
For buyers who qualify, Greater Nevada Mortgage offers great rates on conventional loans for homes in California and Nevada.
Pros and Potential Drawbacks of a Conventional Home Loan
- Can be used on all property types
- Can often come in different term lengths versus the standard 15- or 30-year only options
- Private Mortgage Insurance (PMI) is not required if the loan to value (LTV) amount is 80% or less
- Generally, less steps are needed to close the loan versus other options that often require additional steps to be completed
- Higher credit scores required
- Generally, higher down payment amounts required
- Private Mortgage Insurance (PMI) is required if the loan to value (LTV) amount is above 80%
How to Qualify for a Conventional Mortgage
Ready to get started with a conventional loan? Follow these steps with the help of a Greater Nevada Mortgage consultant, and they’ll work with you to find the best option for your needs.
Calculate What You Can Afford
See how much you can afford to borrow on your home purchase with our Mortgage Calculator.
Submit Your Application
It’s quick. It’s easy. It’s online. Plus, we have a Mortgage Documents Checklist so you know what information to gather.
All your home loan questions are answered by your dedicated mortgage consultant and their team as you learn about what options work best for your goals.
APR = Annual Percentage Rate. APR is the cost to borrow money expressed as a yearly percentage. For mortgage loans, excluding home equity lines of credit, it includes the interest rate plus other charges or fees.
Rates and terms are subject to change without notice. Rates are for illustrative purposes only, and assumes a borrower with a credit score of 700 or higher which may be higher or lower than your individual credit score. Adjustable Rate Mortgage (ARM) loans are subject to interest rate, APR, and payment increase after each change period. For instance, a 5/5 ARM means that you will pay a fixed rate for the first five years of the loan, and then your rate is subject to change once every five years thereafter through the remainder of the loan. Interest rates and APRs are based on current market rates, and may be subject to pricing add-ons related to property type, loan amount, loan-to-value, credit score and other variables. Depending on loan guidelines, mortgage insurance may be required. If mortgage insurance is required, the mortgage insurance premium could increase the APR and the monthly mortgage payment. Your loan’s interest rate will depend upon the specific characteristics of your loan transaction and your credit history up to the time of closing. The estimated total closing costs in these rate scenarios are not a substitute for a Loan Estimate, which includes an estimate of closing costs, which you will receive once you apply for a loan. Actual fees, costs and monthly payment on your specific loan transaction may vary, and may include city, county or other additional fees and costs. Not all loan options are available in every state. Borrower is responsible for any property taxes as a condition of the loan. Membership with Greater Nevada Credit Union is required for select loan options. This is not a credit decision or a commitment to lend.
Please contact a mortgage consultant to learn about all details on loan options and programs available. You may contact one directly, or call Greater Nevada Mortgage at 775-888-6999 or 800-526-6999. We do business in accordance with the Federal Fair Housing Law and the Equal Opportunity Act, and the California Fair Employment and Housing Act.