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This is the most popular loan program because of the low down payment requirement and low rates. As you know,
15 year fixed rate loans are especially attractive today and enable you to pay off your mortgage in half the
If you plan on living in your home for less than 5 years, you can’t beat today’s rates on 5
American Home Free Mortgage has an exciting new program for existing FHA borrowers who would like to refinance their existing
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15 Year Conventional Loan
15 year fixed rate loans are especially attractive today and enable you to pay off your mortgage in half the time! A 15 year conventional loan is a mortgage that is not guaranteed or insured by any government agency, including the Federal Housing Administration (FHA), the Farmers Home Administration (FmHA) and the Department of Veterans Affairs (VA). Most conventional loans have loan amounts that are larger than the limits set by FNMA and FHMLC of $417,000, for most areas. Some key characteristics of Conventional / Jumbo loans include the following:
- Most Conventional Loans require a minimum of a 5% down payment.
- 3% seller concessions are allowed for purchase loans.
- No Mortgage Insurance is required for loans less than an 80% LTV.
- Debt ratios cannot exceed a maximum of 41% – 45%, in some cases.
- Many Conventional Loans typically have higher FICO score requirements (lower score conventional loans will mean higher rates).
- Jumbo loans cannot be sold to FNMA or FHMLC and typically carry a higher interest rate vs. conforming loans.
- Loan limits vary by county, and rates depend on where your property is located.
American Home Free Mortgage has a wide variety of aggressive products to help your clients find the right loan for their larger loan sizes. Contact your loan expert at American Home Free Mortgage to find out more about the various Conventional and Jumbo loan options.
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