Conventional
Loans
Conventional Loans Typically Require
a 20% Down Payment
A conventional loan is any mortgage
which is not guaranteed or insured
by the federal government.
Conventional loans were the first
traditional mortgage loans made by
lenders. The loans were held in the
lender's investment portfolio until
they were either paid in full or foreclosed
upon. Although it enabled the borrower
to build a business relationship with
the lender, this practice was generally
not in the lender's best financial
interest. When rates rose, lenders
found themselves in the position of
receiving below-market interest on
their loans, in addition to not being
able to recycle the funds to lend
to other borrowers.
Conventional Mortgage Loans can also
be used to purchase rental properties
using a 25% down payment. FHA RD and
VA loan programs are only designed
and intended for the purchase of a
primary residence
|
We
sold our old home and had 20%
down to put down on the new
one. Nick was able to get us
a conventional mortgage with
competitive terms and a low
fixed payment without mortgage
insurance on our new condo.
Thanks Nick! Carol and Alan.
Grand Rapids, MI. 
