Conventional Loans

Conventional Conforming loans are mortgages which are not insured by the government (like FHA, VA, USDA Loans), and which meet the lending guidelines set by Fannie Mae or Freddie Mac. Conventional loans are typically less costly overall than other loan types. Conventional loans require borrowers to have good-to-excellent credit and reasonable amount of monthly debt obligations relative to income. Conventional loans are ideal for borrowers with good credit and at least a 5% down payment on single family homes (3% down option is available to first time buyers, please contact us for details). Multi-family and/or investment properties require a higher down payment.

Conventional Conforming loans in Massachusetts from local mortgage expertsMost 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.
  • Custom Term (8-29 Years)
    Benefits: Customize your repayment term based on your individual goals and preferences. Continue exactly where you left off when refinancing.

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

Contact us to discuss your situation specifics and let us help you determine which loan type best serves your needs.