When it comes to home financing, conventional loans are likely what you think of when traditional mortgages come to mind. Conventional loans have competitive rates, flexible terms and can be designed around your unique needs. At Parkside Mortgage, our certified mortgage professionals look closely at each client’s financial standing and financial goals to offer the best-suited conventional loan solutions. If you are looking for home financing for purchase in Louisville, Prospect, and surrounding Kentuckiana communities. Contact Parkside Mortgage to schedule a consultation today and learn more.
What Makes a Conventional Loan “Conventional”?
Do not let the term conventional worry you when it comes to home financing. Conventional loans are fully funded and insured through private companies like Parkside Mortgage. They differ from “non-conventional” loans, which are usually also funded through private lenders, but are backed through government agencies, like the Federal Housing Administration or U.S. Department of Veterans Affairs (i.e., FHA and VA loans).
Conventional loans have some pros and cons when compared with government-backed loans, depending on the borrower. Conventional loans pose a slightly higher risk to lenders because they do not have a government safety net and thus often have more stringent approval guidelines than non-conventional loans. This means clients with poor credit scores may not qualify and will be better suited for nonconventional loans. However, clients who are approved for conventional loans typically enjoy lower interest rates and save money over time when compared with nonconventional loans.
What are Conforming and Nonconforming Conventional Loans?
There are two types of conventional loans: conforming and nonconforming loans. Conforming loans are any mortgages within the $647,200 limit set through government-sponsored entities (not government agencies) Fannie Mae and Freddie Mac, which purchase mortgages in bulk for trade on the public market. Mortgages that exceed this limit are nonconforming “jumbo” loans. In addition to the price limit difference, the main difference to consider is that jumbo loans usually require a larger down payment, have higher interest rates and, often, shorter terms. At Parkside Mortgage, we can help clients with conforming and nonconforming loans at competitive rates.
What Are the Perks of Choosing a Conventional Loan with Parkside Mortgage?
At Parkside Mortgage, we cut through the red tape to help clients complete the approval and closing process for conventional loans quickly. Unique benefits for conventional loans include:
- Paperless, all-digital processing
- Minimal documentation in many cases, sometimes with as few as one paystub and credit check
- Waived home appraisals for certain clients in good financial standing
- Quick closing in as few as two weeks without appraisal and typically under 30 days with appraisal
Conventional loans are available for all types of property, from single-family homes to 1-4-unit properties, vacation homes, condos, manufactured homes, and more. We give each client personalized attention to find the best conventional mortgage rates for whatever property they wish to purchase.
See What a Conventional Loan Can Do for You
If you are considering purchasing a home with a conventional loan, a Parkside Mortgage can evaluate your situation and provide quotes, fast. We love to create long-term relationships with our borrowers, and we provide the one-on-one care we know you deserve. If you are considering purchasing in Louisville, Prospect, or nearby Kentuckiana, contact us for a consultation about conventional loans today.