Conventional mortgages, or conventional loans, are home buyers’ loans that are not offered or secured by government entities. Conventional mortgages can be given out by private lenders, banks, credit unions, or through mortgage companies.
Conventional mortgages, which you can borrow from lenders who handle Florida commercial mortgages, usually have a fixed interest rate that will not change while you have the loan. The federal government does not guarantee these loans, however, some government agencies can secure mortgages for lenders, such as the Federal Housing Administration (FHA) or the U.S. Department of Veterans Affairs (VA).
Conventional mortgages are a resource both borrowers and investors use for financing property. Monroe Funding Corp offers four different types of conventional mortgage loans.
- FHA Loans: these are insured by the Federal Housing Administration and issued by FHA-approved lenders. They are made for low-to-moderate-income borrowers and generally have lower minimum down payment requirements. We can secure these loans with a minimum of 3,5% down with a 500 plus credit score. Due to the FHA loan’s lower level of requirements, many turn to these loans for their first property purchase.
- VA Loans: given out through the U.S. Department of Veterans Affairs and are only available to veterans, service members, and surviving spouses. With a VA loan, you can purchase homes with little down payment and without private mortgage insurance. These loans also have competitive interest rates and usually have no prepayment penalties.
- Jumbo Loan: also known as a jumbo mortgage. In this case, financing exceeds Federal Housing Finance Agency (FHFA) limits and cannot be purchased, guaranteed, or securitized by lenders like Fannie Mae or Freddie Mac. Jumbo loans are made for financing luxury property and homes in competitive markets.
- Refinancing: if a borrower wants to refinance with lower rates than the ones they currently have or would like to use equity from their home to consolidate debt and finance home improvements, refinancing may be an option.
If you are interested in taking out a conventional mortgage, start making an impact on your investments with Monroe Funding Corp. Our private mortgage lending system for real estate is fast and flexible so that you can get to the closing table quickly. For more information, visit us online.