Banks Fight For Your Business
As brokers, we shop your scenario with 30+ lenders to get you the best rate.
No Lender Fees
We don't charge any lender fees, saving you on average $1,600 over retail banks.
Won't Impact Credit Score
We make sure the numbers work before running your credit.
Conventional Loan are Available!
Receive a quote on a Conventional Loan today 👇
|
What is a Conventional Loan?
Conventional loans are mortgages that are not insured or guaranteed by the federal government. Unlike FHA loans in California, VA loans in California, or USDA loans, which are backed by the government, conventional loans are offered by private lenders and typically follow the guidelines set by government-sponsored enterprises (GSEs) like Fannie Mae and Freddie Mac. These guidelines help ensure the stability and consistency of the loan market, making them a popular choice for home loans in California. In today’s modern mortgage landscape, these loans offer flexibility and competitive rates for a variety of borrowers.
Conventional loans may be “conforming” and “non-conforming”. Conforming loans follow the guidelines set by Fannie Mae and Freddie Mac. These guidelines put the maximum purchase amount for a first mortgage at $647,200 for a single-family dwelling. If the purchase is for a property that is either a two-family, three-family, or four-family dwelling, larger values apply before the loan is no longer considered a conventional loan.
|
Please reach out to me with any questions. My goal is to make this a 5-star experience for you!
Ready to Buy?
SEE IF YOU QUALIFY
The Details are Important
The most significant feature of a conforming loan is its adherence to the loan limits set by Fannie Mae and Freddie Mac. For a single-family home, the maximum loan amount is typically $647,200, though this can vary depending on the county and area in California. In high-cost areas, such as parts of Los Angeles or the Bay Area, this limit can rise to as much as $970,800. For multi-family properties, such as a duplex, triplex, or fourplex, the loan limits are higher. If the loan amount exceeds the limits set by Fannie Mae and Freddie Mac, it becomes a non-conforming loan and may be considered a jumbo loan, which often comes with stricter terms and higher interest rates.
One of the main advantages of conventional loans is that they generally offer lower interest rates compared to other types of loans, such as FHA loans in California or VA loans in California, especially if the borrower has a strong credit profile and a sizable down payment. For borrowers looking for the best mortgage rates in California, conventional loans can often provide better terms than government-backed loans. Additionally, conventional loans may allow for more flexible terms and faster processing times, making them an attractive option for many buyers in today’s modern mortgage market. However, they typically require a higher credit score and a down payment of at least 3% to 20%, depending on the lender and the borrower’s financial situation.
Working with a mortgage broker in California can help borrowers navigate the different loan options available, ensuring they find the best mortgage lenders in California to meet their specific needs. Whether considering conventional loans, FHA loans in California, VA loans in California, or jumbo loans in California, a mortgage broker can offer personalized guidance to secure the right home financing solution in the evolving modern mortgage market.
NEXA Mortgage, LLC offers conventional fixed rate loans, adjustable rate loans and interest only loans:
- With a fixed rate loan, your rate is fixed and your payment remains the same throughout the length of your loan (i.e. 30 years, 25 years, 20 years, 15 years, or 10 years) A fixed rate loan is an excellent choice if you plan to live in the home for many more years.
- With an adjustable rate loan, your rate will adjust and your payments will fluctuate based on changes in the market. However, the rate and payment remains unchanged during the introductory period which could be 3, 5 or 7 years. The initial rate for an adjustable rate mortgage is usually lower than that of a fixed rate loan. After the introductory period expires, the interest rate is subject to adjust at predetermined periods, usually every six months. The rate adjustments are based on market interest rates and the adjustment caps limit how much your interest can adjust in a specified period of time. An adjustable rate mortgage is a great choice if you don’t plan to own the home for a long period of time.
- With an interest-only loan, you only pay the interest on the principal balance of the loan for a set period of time (i.e. 5-years or 10 years) with the principal balance remaining unchanged for that period of time. Once the interest-only period is up, the principal balance of the loan is then amortized for the remaining term of the loan (i.e. 20 years or 25 years). An interest-only loan is a good choice if you are looking for more flexibility as your initial payments will be less for the first 5 or 10 years.
Calculate Your Payments
Use our Payment Calculator to estimate your monthly mortgage payment. You can input a different home price, down payment, loan term and interest rate to see how your monthly payment changes.
Live Market Pricing
Welcome to our comprehensive live market pricing feature! We understand that securing the best mortgage rate is crucial when making one of life’s biggest investments.
Loan Process
Welcome to our comprehensive guide to the loan process. Whether you’re a first-time homebuyer or experienced investor, understanding the steps involved in securing a loan is crucial. We’re here to simplify this journey for you.
