For homebuyers looking to finance their purchase, there are two kinds of home loans: conventional and non-conventional. Conventional loans are defined by NerdWallet as “any type of mortgage that isn’t backed by a government agency” like the Fair Housing Authority (FHA) or the Department of Veterans Affairs (VA). Conventional home loans are the most popular type of home loan for good reason – read on to learn why a conventional loan might be the best option for your financial situation.
Why Choose a Traditional Home Loan?
There are a few reasons you might choose a conventional loan over a non-conventional loan when you purchase a new home. For one thing, if you already own your primary residence, and are seeking to purchase a second home or investment property, you will be ineligible for many non-conventional home loans on the new property. The conforming loan limits for conventional loans are typically higher than for non-conventional loans as well, meaning with a conventional loan you are free to purchase a home of any value (so long as you qualify)!
One of the other most attractive qualities of a conventional home loan is the flexibility that conventional loans can afford prospective homeowners. Regardless of your financial situation, or housing needs, a seasoned loan officer like a member of the team at The Federal Savings Bank can help you find the right loan for you and your family. Oftentimes that loan will be a conventional loan, because of fewer restrictions placed on the loan by state or federal agencies.
Why Get Pre-Approved for a Conventional Loan or Non-Conventional Loan?
In today’s home sales market, one of the best ways to stay competitive as a buyer is to obtain pre-approval from a trusted lender like The Federal Savings Bank. Call us at 1-877-788-3520 to begin your loan application process—a pre-approval in hand shows the seller of the home you want that you’re serious, you understand the process, and that you are capable of closing the transaction quickly. Starting the approval process now will allow you to shop stress-free for the home you know you can afford. You can also start the process and apply online today!
Subject to credit approval. Terms and conditions may apply. Property insurance is required on all loans secured by property.
This information is intended for educational purposes only. Products and interest rates subject to change without notice. Loan products are subject to credit approval and include terms and conditions, fees and other costs. Terms and conditions may apply. Property insurance is required on all loans secured by property. VA loan products are subject to VA eligibility requirements. Adjustable Rate Mortgage (ARM) interest rates and monthly payment are subject to adjustment. Upon submission of a full application, a mortgage banker will review and provide you with the terms, conditions, disclosures, and additional details on the interest rates that apply to your individual situation.
