If you are looking for a home loan, considering a conventional loan is a great option. A conventional mortgage refers to a loan that is not insured or guaranteed by the federal government. A conventional, or confirming, mortgage adheres to the guidelines set by Fannie Mae and Freddie Mac. It may have either a fixed or adjustable rate. The maximum limit for a conforming loan depends on the county and the state you live in.

Conventional loans can be either Fixed or an adjustable rate. Fixed-rate mortgage have a set interest rate for the entire length of the mortgage term. An adjustable-rate mortgage (ARM) has a term of 30 years with a low introductory rate for a fixed period followed by periodic adjustments according to a specific benchmark, typically a specific LIBOR or a T-Bill index. 



If your income and credit qualify and you want to purchase a new home or merely lower the rate or term of you existing home, Conventional loan may be what is best for you. Conforming loans require a down payment/equity as little as 3%* for a fixed rate term. If you need to take cash out for any purpose Conventional financing will allow you to borrow up to 85%* of your home's va;ue. Always check with your Loan Officer for specific guidelines and to see what you qualify for.