What is a conventional mortgage?
Conventional mortgage loans are not part of a specific government program. They are guaranteed solely by private mortgage lenders. Drummond Community Bank offers conventional home loans for primary residences, vacation homes, investment properties, and construction-to-permanent loans. Finance up to 97% of the home’s purchase price with fixed and variable-rate options.
Get pre-qualified for a conventional home loan
Our experience is that pre-qualifying for a mortgage is of great benefit. Not only will it speed up your process, but it will also help you understand in advance how much of a house you can afford. And, you can demonstrate confidence in your ability to obtain financing. Both of these aspects can greatly assist in your negotiation process.
Need Help Deciding?
If it’s your first time applying for a mortgage, or you’re unsure which option is right for you, we can help. The key to making a smart financial decision begins with understanding the benefits of each product and determining which one meets your goals. Give us a call or visit your nearest Drummond branch.
Features and Benefits
- For primary residence, second home or an investment
- Up to 97% loan to value (LTV) for purchase
- One-time close construction permanent loans
- Fixed and variable-rate options
- Fast loan approval
Other Drummond Home Mortgage Solutions:
- FHA: For primary residence only. Gift funds permitted for down payment. May use seller concessions up to 6% toward closing costs.
- VA Mortgage: Up to 100% financing for eligible servicemembers and veterans.
- USDA Mortgage: 30-year fixed rate mortgage for a primary residence. Income and geographic requirements apply.
Frequently Asked Questions:
What is the difference between FHA and Conventional Mortgages?
FHA loans are insured by the federal government, which makes it less risky for lenders to approve home loans for people with lower credit scores and/or lower down payments. FHA loans also have a mandatory mortgage insurance premium, so if you can qualify for a conventional mortgage, it’s probably a better option.
What do I need to apply for a mortgage?
To start applying, we recommend you have the following information on hand:
- A separate email address for each person that will be on the loan
- Details(bank statements) about how much money is in each account you would like us to consider for your approval
- Your income and employer information
- Your social security number
- A valid drivers license
What are the pros and cons of a conventional loan?
Conventional loans are an attractive option for many borrowers. They offer no mortgage insurance requirement with a 20% down payment, competitive interest rates, a choice between fixed or variable rates, and can be used for all types of properties. However, conventional loans have more stringent credit and income requirements than government loan programs, so not every home buyer may qualify for a conventional loan.
What is the difference between conforming and non-conforming?
Conforming mortgages meet the maximum loan amounts set by the federal government. Non-conforming loans exceed those loan amounts and may have stricter requirements for qualifying, as well as higher interest rates.
What is the best place to get a conventional loan from?
At Drummond Community Bank, we are proud to bring you the best possible mortgage loan terms and features such as fast loan approval, flexible loan terms, and competitive rates.
Don't forget to save, too!
