A “conventional mortgage” is any mortgage loan that is not insured or guaranteed by the federal government.
Conventional loans have terms and conditions that follow the guidelines, loan limits and underwriting standards set forth by Fannie Mae and Freddie Mac. These loans utilize an automated underwriting system and loan approvals are based on many factors including: credit history, fico score, down payment, property type, employment history, assets and property value.
Conventional Conforming loans are ideal for homebuyers with average to excellent credit who can afford a down payment of at least 3-5% on a 1-unit primary residence. Down payments on 2nd homes and investment property can vary depending on how many financed properties the borrower has and if the property is a 2, 3 or 4-unit property.
Conventional loans can have a fixed interest rate or an adjustable interest rate. Anchor Mortgage, LLC offers 30, 25, 20, 15 and 10-year fixed-rate options. With an Adjustable-Rate Mortgage (ARM), the interest stays constant for a pre-determined amount of years and then varies based on market conditions. 5/1, 7/1** and 10/1** ARMS are available.