Christine Boles

NMLS# 653543

Branch Manager, Producing

Conventional Mortgages

What is a Conventional Mortgage?

A Conventional Mortgage is simply any mortgage loan that is not insured or guaranteed by the federal government. Conventional Mortgages typically require a down payment of as low as 3% or up to 20%. In addition, they have higher income and credit score requirements than government loans.

Conventional Mortgages can have a fixed interest rate or an adjustable interest rate. Typical fixed-rate loans have a term of 30 or 15 years. However, Academy Mortgage offers 30-year, 25-year, 20-year, 15-year, and 10-year fixed-rate options.
Click here for more information about Fixed-Rate Mortgages

With an Adjustable-Rate Mortgage (ARM), the interest rate stays constant for a term and then fluctuates based on market conditions. Academy offers a 10/1 ARM, 7/1 ARM, 5/1 ARM, and 3/1 ARM.
Click here for more information about Adjustable-Rate Mortgages

Conventional Mortgages are also categorized as conforming or non-conforming. If a loan meets the underwriting requirements set forth by the government-sponsored entities Fannie Mae and Freddie Mac, it is considered a conforming loan. If a loan does not meet all these requirements, it is considered a non-conforming loan.

One of the main factors that determines whether a mortgage is conforming is the loan amount. Generally, a mortgage with a loan amount below $453,100 is considered conforming, whereas any loan amount above $453,100 is considered non-conforming, or a Jumbo Mortgage. Conforming limits may be higher in areas of the country with more expensive housing; for example, the conforming limit is $679,650 in Alaska and Hawaii. Jumbo Mortgages usually have a higher interest rate because they carry greater risk.
Click here for more information about Jumbo Mortgages

What are the benefits of a Conventional Mortgage?

Conventional Mortgages offer the following features:

  • Buyer has immediate equity in the property.
  • No private mortgage insurance is required with a 20% down payment, which is a great advantage.
  • Lower closing costs and fees.
  • Closing costs and fees may be included in the loan.
  • Repayment terms are generally more favorable.
  • Fewer bureaucratic hurdles, making the loans quicker to process.
  • No government stipulations and prepayment penalties if you sell or refinance your house.

Who may benefit from a Conventional Mortgage?

Conventional Mortgages are ideal for buyers with excellent credit who can afford a down payment.

For more information

Contact your Loan Officer today to see if a Conventional Mortgage is the right solution for you. We take pride in delivering value and savings to homebuyers across the United States. It would be a pleasure to help.

NMLS# 653543

State Lic: TX: 653543;

Corp Lic: TX: 3113;

Figure: 7 TAC §81.200(c) CONSUMERS WISHING TO FILE A COMPLAINT AGAINST A MORTGAGE BANKER OR A LICENSED MORTGAGE BANKER RESIDENTIAL MORTGAGE LOAN ORIGINATOR SHOULD COMPLETE AND SEND A COMPLAINT FORM TO THE TEXAS DEPARTMENT OF SAVINGS AND MORTGAGE LENDING, 2601 NORTH LAMAR, SUITE 201, AUSTIN, TEXAS 78705. COMPLAINT FORMS AND INSTRUCTIONS MAY BE OBTAINED FROM THE DEPARTMENT'S WEBSITE AT WWW.SML.TEXAS.GOV. A TOLL-FREE CONSUMER HOTLINE IS AVAILABLE AT 1-877-276-5550. THE DEPARTMENT MAINTAINS A RECOVERY FUND TO MAKE PAYMENTS OF CERTAIN ACTUAL OUT OF POCKET DAMAGES SUSTAINED BY BORROWERS CAUSED BY ACTS OF LICENSED MORTGAGE BANKER RESIDENTIAL MORTGAGE LOAN ORIGINATORS. A WRITTEN APPLICATION FOR REIMBURSEMENT FROM THE RECOVERY FUND MUST BE FILED WITH AND INVESTIGATED BY THE DEPARTMENT PRIOR TO THE PAYMENT OF A CLAIM. FOR MORE INFORMATION ABOUT THE RECOVERY FUND, PLEASE CONSULT THE DEPARTMENT'S WEBSITE AT WWW.SML.TEXAS.GOV.;