Conventional mortgages are loans that are not guaranteed or insured by any government agency, such as the Department of Veterans Affairs (VA) or the Federal Housing Administration (FHA). VA loans are designed for Veterans, active duty military personnel, and, in some cases, their spouses and can have a lower down payment. As a part of the Department of Housing and Urban Development, the FHA insures residential mortgage loans made by private lenders, like First Choice Loan Services Inc.
Conventional mortgages loans adhere to Federal National Mortgage Association (Fannie Mae) or Federal Home Loan Mortgage Corporation (Freddie Mac) guidelines and can be conforming or non-conforming. Fannie Mae is a corporation created by the federal government that buys and sells conventional mortgages. It sets the maximum loan amount and requirements for borrowers. Chartered by Congress in 1970, Freddie Mac was established to strengthen and support the country’s residential mortgage market and provide more opportunities for homeownership.
Typically, conventional mortgages have fixed terms and rates. We have many different terms of fixed-rate loans available. With this type of conventional mortgage, the interest rate is fixed for the term of the loan. Another common feature of a conventional mortgage is for the borrower to provide an amount for the down payment.
These types of loans provide wonderful home financing options for borrowers with reserves for a down payment. Because of this larger percentage down, conventional mortgages can provide better interest rates than non-conventional mortgages. However, home buyers still have mortgage options even if they may not have access to the larger down payment amount. With a lower down payment amount and a potentially higher interest rate, non-conventional mortgages such as an FHA or VA loan might be a better option.
Fantastic people that go the extra mile to ensure customer service. Buying my first home I was extremely nervous and anxious. They helped ease any worries I had with their knowledge and explanations on all parts of the loan process. -Brett G. | Cypress, TX | 12.6.2017
The hyperlinks to other websites are provided solely as a convenience of the users of the First Choice Loan Services Inc. internet site, or the sites of its mortgage loan originators. The Company has made a limited effort to determine that these links function properly. Linked sites are not under the control of the Company or Originator, and the Company or Originator is not responsible for the contents of any linked site, or any link contained in a linked site, unless the site is www.fcloans.com. You are responsible for confirming the identity and authenticity of any site you visit and transact business with online. The inclusion of a link does not imply or constitute an endorsement by the Company, its ownership or management, the originator, the products or services it offers, or any advertisers or sponsors appearing on these web sites.You can click the Cancel button to return to the previous page or use the back arrow/button on your browser after you leave.
Protect yourself from possible e-mail fraud threats. First Choice Loan Services will never request your confidential information through email. Contact us at 855-532-2047 to verify any email request or to report suspicious emails.