Contact Us 801-373-4700 APPLY ONLINE HOME APPLY NOW ABOUT US INTEREST RATES LOAN PROGRAMS LOAN PROCESS CONTACT US Conventional Loans What are Conventional Loans? Conventional Loans are mortgage loans that are not insured by the government (like FHA, VA, USDA Loans), but they typically meet the lending guidelines that have been set by Fannie Mae or Freddie Mac. Typically, conventional loans have better rates, terms and/or lower fees than other types of loans. However, conventional loans typically require a borrower to have good-to-excellent credit, reasonable amounts of monthly debt obligations, a down payment of 5-20% and reliable monthly income. Conventional loans are ideal for borrowers with excellent credit and at least a 5% down payment. Most Common Types of Conventional Loans Fixed Rate Mortgages: Your rate and payment never change. 30 Year Fixed Loan Benefits: Lowest fixed monthly payments 20 Year Fixed Loan Benefits: Low fixed monthly payments 15 Year Fixed Loan Benefits: Lower rate than the 15 or 20 Year Fixed; Pay less interest and pay your home off more quickly. 10 Year Fixed Loan Benefits: Lower rate; Pay off your loan and build equity faster. 5 Year Fixed Loan Benefits: Lowest rate; Pay off your loan and build equity the fastest Adjustable Rate Mortgages: After the initial period your interest rate can change once a year. 3/1 ARM Fixed Rate for 3 Years, Adjustable Rate for the remaining 27 years 5/1 ARM Fixed Rate for 5 Years, Adjustable Rate for the remaining 25 years 7/1 ARM Fixed Rate for 7 Years, Adjustable Rate for the remaining 23 years What are the Conventional Down Payment Requirements? For Purchase transactions Conventional Loans require the home-buyer to put down at least 5% - 20% of the purchase price of the home. For a Refinance transaction, most lenders require at least 10% equity in the property. If you don't have enough equity to qualify for a conventional refinance - even if you owe more than your home is worth - you might be eligible for a HARP 2.0 Loan. What types of property are eligible? Most conventional loan programs allow you to purchase single-family homes, warrantable condos, planned unit developments, and 1-4 family residences. A conventional loan can also be used to finance a primary residence, second home and investment property. Find Out if a Conventional Loan is Right for You Fill out this quick form and we'll get right back to you with the answer. {FORMS_QUICK_WIDGET} Sterling Capital Inc. NMLS: 90766 376 E 60 S Suite B American Fork, UT 84003 801-373-4700 801-373-7500 http://www.nmlsconsumeraccess.org Quick Links Contact Us Licensing Privacy Policy Accessibility Statement Copyright © Sterling Capital Inc., Etrafficers, Inc and its licensors. All rights reserved. Mortgage Websites designed and powered by Etrafficers, Inc.