Conventional Loan

Experience Flexibility, Competitive Rates, and Tailored Financing

Conventional loans are mortgages that are not backed by the federal government. They offer a unique combination of flexibility and competitive interest rates. Unlike government-backed loans, conventional loans provide diverse down payment options and fewer restrictions. Whether you’re a first-time homebuyer or looking to refinance, our conventional loan options are tailored to fit your financial profile and property aspirations. You can trust our expertise to guide you through your homeownership journey.

Considering a Conventional Loan?
Federal Hill Mortgage is Your Trusted Partner.

Access the Best Rates

When you choose us, we use our extensive network of lending partners to guarantee you the best rates available. We streamline the process, ensuring that you receive the most advantageous rates and save you both time and money on your home purchase.

Same-Day Pre-Approvals

Step into the fast lane with our same-day pre-approvals. Many of our clients find themselves pre-approved in the same day, setting the stage for a smooth home-buying experience.

24/7 Support Tailored for You

We value your time and know that questions can arise at any moment. That's why our phone lines are open around the clock, ensuring you always have a dedicated team ready to assist with any inquiries or concerns.

We shop the best lenders and rates, so you don't have to.

Leveraging our expansive network of top lenders, we eliminate the need for you to shop around. Our rates are not only competitive but come with the trust and expertise of a seasoned team with over 18 years in the industry. Your dream home is just a decision away.

Understanding the Benefits

Conventional Loan Features:

  • Competitive Interest Rates

    Enjoy some of the most attractive interest rates in the market with conventional loans.

  • Diverse Loan Terms

    Choose from a variety of loan durations, from 10 to 30 years, to find the perfect fit for your financial situation.

  • Streamlined Refinancing

    Benefit from the option to refinance your mortgage with ease, potentially lowering your monthly payments.

  • Higher Loan Limits

    Conventional loans often come with higher loan limits, allowing you to purchase a more expensive home if desired.

  • Stable Monthly Payments

    Opt for a fixed-rate conventional loan and enjoy the stability of consistent monthly payments.

  • Fewer Penalties

    Experience fewer penalties and hidden fees compared to other mortgage options.

  • Broad Property Choices

    Use your conventional loan for various property types, including primary residences, second homes, and investment properties.

  • Robust Credit Building

    Timely repayments on your conventional loan can significantly boost your credit score.

  • Customizable Loan Features

    Tailor your loan with features like interest-only payments or adjustable-rate periods to suit your needs.

  • Dedicated Support

    Get expert guidance throughout the loan process, ensuring a smooth and informed home-buying experience.

Wondering If a Conventional Loan Fits Your Needs?

It's natural to have questions, and that's why we're here. At Federal Hill Mortgage, we're not just about loans; we're about people. We're committed to ensuring you never feel lost or overwhelmed. Our mission? To provide clarity, transparency, and a human touch to every step of your homebuying journey.

Chat with a Loan Expert

Common questions about Conventional Mortgage Loans

  • A conventional mortgage loan is a home loan not backed by a government entity and conforms to the loan limits and guidelines set by Fannie Mae and Freddie Mac. It's typically offered by private lenders and requires a higher credit score and down payment than government-backed loans.

  • The key benefits of a conventional loan include competitive interest rates, varied term lengths, no upfront mortgage insurance fees, and the flexibility to purchase different types of properties, such as primary homes, second homes, or investment properties.

  • To apply for a conventional loan, you'll need to provide proof of identity, income verification documents like W-2s and paystubs, recent bank statements, and additional financial information, especially if you're self-employed.

  • The borrowing limit for a conventional loan is set by the Federal Housing Finance Agency (FHFA) and varies by county. In most areas, the 2023 limit is $726,200, but it can be higher in certain high-cost areas.

  • Conventional loans typically require a minimum down payment of 5%. However, there are programs with down payment requirements as low as 3% for qualified first-time homebuyers and other eligible borrowers.

  • PMI is required for conventional loans with a down payment less than 20%. Once you've reached 20% equity in your home, you can request to cancel PMI, potentially lowering your monthly payments.

  • Yes, one of the versatile aspects of conventional loans is their use for various property types, including investment properties, which is not always possible with government-insured loans.

  • Closing costs for conventional loans are typically between 2% to 5% of the home's purchase price. These costs may include lender fees, appraisal fees, title insurance, and other related expenses.

  • A conventional loan might be more advantageous than an FHA loan if you have a strong credit score and can make a 20% down payment to avoid PMI. Conventional loans also offer more flexibility with property types and have no upfront mortgage insurance premium.

  • No, most conventional loans are not assumable. This means that if you sell your home, the buyer will need to obtain their own mortgage.