A Michigan Conventional Mortgage is a traditional mortgage home loan for prime borrowers. If you have perfect credit or near perfect credit this may be the best type of loan for you.
If you are under 80% LTV (Loan to Value) you will be able to avoid PMI (Private Mortgage Insurance or Mortgage Insurance Premiums). Conventional Mortgages also are perfect for home buyers that are able to contribute a 20% down payment (however many people choose a lesser down payment).
For more information on Michigan Conventional Home Loan programs from Riverbank, call us at 800-555-2098 or apply online today!
Conventional Mortgage Application
By definition, a Conventional Mortgage Loan is any mortgage that is not guaranteed or insured by the federal government. Typically a conventional mortgage is a home loan that conforms to the standards set by Fannie Mae and Freddie Mac.
Home loans like a conventional mortgage can be sold on the secondary market as a mortgage backed security (MBS) because they are in the same format as other mortgages. Non-conforming loans are loans that do not meet the standards set by Fannie Mae and Freddie Mac and are usually held as a portfolio loan and not resold.
The maximum loan amount for Conventional Conforming Loan varies from county to county and from state to state. The highest maximum Conventional Mortgage limit right is set at $625,500 in places such as Alaska and Hawaii but are considered high costs areas. The typical maximum Conventional Mortgage amount available in any county is $424,100. For more information on conventional loan limits visit Fannie Mae's Loan Limit chart: Conventional Loan Limits. If your home loan is above $424,100 then it would be considered a Jumbo Loan.
A conventional mortgage down payment requirement is typically between 3% and 20% of the purchase price. The standard at most mortgage companies is 5% of the purchase price for the down payment requirement however this number may vary from bank to bank.
At Riverbank Finance, we allow for as little as a 1% down payment on a conventional mortgage to keep cash in your pocket. The Freddie Mac Home Possible Mortgage may be a great fit for first time home buyers with little reserves. Many conventional mortgage programs have the best interest rates with 5% down. Many home buyers choose a 20% down payment for a conventional mortgage to avoid PMI.