What are Conventional Loans?
To make it simple, conventional Florida mortgage lenders provide mortgage laons that are or are not backed by government agencies, such as the Federal Housing Administration (FHA) and VA. However, they comply with strict eligibility guidelines set by Fannie Mae and Freddie Mac.
Both of these stock-holding companies purchase loans from lending institutions and resell them to the investment community. Each year, they reevaluate and redefine the underwriting guidelines to ensure the strength of these loans.
Typically, if you have better credit scores these conventional loans have better rates and terms compared to other Florida mortgage loan programs. For conventional loans, the down payments can be as low as 3% or as high as approximately 20% and the repayment of the loan may be between 10 to 30 years.
Am I Qualified for a Conventional Loan?
The terms and fee of securing a conventional loan depend on various factors. The borrower’s profile, credit score, the property in question, the down payment, and the lender all impact eligibility.
To get approved for a conventional loan in Fort Lauderdale, you need to meet the following requirements:
What are Fixed Rate Conventional Loans?
Fixed-rate loans are a type of conventional loans. They are fully amortized loans that have a fixed interest rate. This means that the rate will not rise or fall over the term your mortgage lasts.
Understandably, these are the most commonly applied for. They offer borrowers more security as the mortgage payments won’t change over time. These loans are amortized over a period of 15, 20 or 30 years.
Adjustable Rate Loans
Compared to fixed-rate loans, these Florida mortgage loans initially offer lower interest rates. They are more suited to the needs of Florida mortgage applicants who accept the probability of fluctuating interest rates. In most cases, this is to take advantage of a low interest rate at the beginning.
Unlike fixed-rate conventional loans, these are set for 5- to 7-year terms. These are based on 30-year amortized loans.
Furthermore, self-employed Florida mortgage applicants need to provide 1 year’s income to qualify for a conforming loan. First-time home buyers are eligible to receive a Florida Mortgage Credit Certificate (MCC).
Florida Mortgage Lenders Specializes in All Forms of Conventional Loans in Every City and County in Florida.
Call Now📞954-667-9110 Fast Free Consultation!
