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Conventional Mortgages and Loans

Are you ready to buy a new home or refinance your existing mortgage? A conventional mortgage may be the best option for you. Conventional mortgages are not government backed loans, but are funded by private lenders and offer a wide range of flexible programs tailored to meet your unique needs. At Quaint Oak Mortgage, we offer conventional mortgages with competitive rates and personalized service to help you achieve your homeownership goals.

Understanding Conventional Loan Requirements

Conventional loans, also known as conforming loans, follow the guidelines set forth by Fannie Mae (Federal National Mortgage Association or FNMA) and Freddie Mac (Federal Home Loan Mortgage Corporation or FHLMC). Conventional loan requirements dictate that the loan must meet specific lending criteria. These requirements can include:

  • Loan Amount
  • Loan-to-Value (LTV) Ratio
  • Debt-to-Income (DTI) Ratio

Conventional loans can be used to purchase or refinance primary residences, second homes, and even investment properties. This mortgage type often works best for people with credit scores greater than 620 and a DTI ratio of less than 50%. If the down payment is less than 20%, the loan will require private mortgage insurance (PMI).

Young family standing in front of newly bought house financed with a conventional loan from Quaint Oak Mortgage

Benefits of Conventional Mortgage Loans with Freddie Mac and Fannie Mae

Conventional mortgage loans offer competitive rates, the ability to finance non-owner-occupied homes as well as primary residences, and the ability for larger loan sizes than many government loans.

Additionally, there are some specialty programs available:

Freddie Mac Home Possible

Designed for low to moderate-income borrowers, the Home Possible program allows for down payments as low as 3% and reduced PMI coverage or costs when compared to the standard conventional programs.

Fannie Mae HomeReady

This program is designed for low to moderate-income borrowers and offers down payment options as low as 3%, reduced mortgage insurance requirements, and flexible income eligibility requirements.

Fannie Mae HomeStyle Renovation

This program is designed to allow borrowers to renovate their existing home through a refinance or purchase a home and finance in repair costs.

A Conventional Mortgage That Works for You

Understanding the different types of conventional mortgages available can help you make an informed decision when buying or refinancing your home. Conventional mortgages are just one of the options available to help make homeownership more accessible and affordable. Connect with a member of our team to find the conventional mortgage that fits your situation.