- Guaranteed low rate
- Fixed-rate terms from 15- to 30-years
- Points and no-point options available
- Receive up to a $500 gift card at closing*
Liberty’s conventional mortgage loans provide flexible terms and great local service that help make us the area’s top mortgage lender. Apply online or contact us today to get started!
*Gift card offer is available on financing of purchase or construction loans for primary residences only. Purchase or construction loan amounts up to $149,999 will receive a $250 gift card. Purchase or construction loan amounts of $150,000 or greater will receive a $500 Gift Card. Not valid in combination with any other offer.
All About Conventional Loans
Conventional loans are mortgage loans that are not government backed loans, such as VA loans and FHA loans. Conventional loans are considered either conforming or non-conforming loans. Conventional loans, above the lending limits set by Fannie Mae and Freddie Mac, are called non-conforming or jumbo loans. Conversely, conventional loans within the limits (in most cases $417,000 or less for a single family home) are considered conforming loans.
Conventional loans most often have either fixed or adjustable interest rates. Typical fixed interest rate loans have a term of 15 or 30 years, with a shorter-term loan usually carrying a lower interest rate. Adjustable-rate mortgages (ARM) fluctuate in relation to the rate of a standard financial index, so monthly payments can go up or down accordingly.
Fixed Rate Mortgage
A fixed-rate conventional means that the interest rate stays the same for the entire loan period. The advantage of a fixed rate conventional loan is that the borrower always knows exactly how much the monthly payment will be.
Adjustable Rate Mortgage
In the case of a conventional adjustable rate mortgage (ARM), the initial interest rate and monthly payments are low, but may change during the course of the loan. Conventional loans mainly follow the Constant Maturity Treasury Index (CMT) or the London Interbank Offered Rate Index (LIBOR) in calculating the changes in interest rates. Conventional ARMS are offered with initial fixed rate periods of 3, 5, 7, and 10 years.
Conventional loans require the home buyer to invest at least 5% – 20% of the home sale amount in cash for the down payment and closing costs. A wide range of properties are eligible for conventional loans, including houses, condos, unit developments, and manufactured homes. Conventional loans may be taken to finance a primary residence, second home, or an investment property.
If you are thinking of buying or refinancing a home, contact Liberty Financial to learn more about the options available with conventional loans. We will provide you with knowledgeable guidance and excellent service while working to help you achieve your home related financial goals.
- Prior two years addresses and dates of residence.
- Social Security number or tax ID.
- Driver’s license or state issued identification card.
- Prior two years employment information including employer contact and dates of employment.
- Most recent W2 and pay stub for all income sources.
- Two years federal tax returns, including tax applicable schedules if you are self-employed, have rental income, farm income or additional non-W2 reported income.
- Alimony, child support or separate maintenance documentation if you wish to have it considered as basis for repaying this obligation.
- Additional information may be required such as Divorce decree (if applicable) and/or proof of extra income such as rental income, dividends, Social Security, retirement, disability, pension, or welfare (supporting documentation is required).
- Balance owed on all liens attached to the property including all mortgages as well as any home equity loans or lines of credit.
- Most recent mortgage statement (if applicable).
- Most recent property tax bill.
- Most recent hazard insurance declaration page.
- Most recent flood insurance declaration page (if applicable).
Loans are subject to credit review and approval. Closing costs may apply. A sample principal and interest payment on a (30)-year $150,000 fixed rate loan amount with a 4.250% interest rate (4.317% APR) is $737.91. Taxes and insurance are not included; therefore, the actual payment obligation will be greater. Actual interest rate may vary based on credit history. *Gift card offer is available on financing of purchase or construction loans for primary residences only. Purchase or construction loan amounts up to $149,999 will receive a $250 gift card. Purchase or construction loan amounts of $150,000 or greater will receive a $500 Gift Card. Not valid in combination with any other offer.