Flexible Loans with a Variety of Options

Conventional mortgage loans are not backed by a government entity (such as the Federal Housing Administration). Requirements for these loans are determined by:

• Down payment amount
• Borrower's credit score
• Amount of the loan
• Borrower's income

Conventional mortgage loans are flexible:

• Term can range from 5-30 years
• Up to 97% loan to value with 100% gift down payment feature

Most conventional loans offer the choice between a fixed or adjustable interest rate. When trying to determine if a fixed or adjustable rate best suits your situation, consider the following:

Fixed-Rate Mortgage

• Principal and interest payment remains the same over the life of the loan
• Locks in an interest rate, protecting against an increase in rates
• Good choice if staying in your home for an extended time

Adjustable-Rate Mortgage

• Rate/Payment is locked in for the first 3, 5, 7 or 10 years
• After the initial term, rate adjustments occur annually
• Offers a lower initial interest rate
• Can be a good option for borrowers who plan to sell or refinance once the initial term has expired.