Conventional Loans are Available!
Competitive rates, flexible terms, and low down payment options for qualified buyers purchasing or refinancing a home.
What is a Conventional Loan?
A conventional loan is a mortgage that is not insured or guaranteed by the federal government. Instead, these loans typically follow the guidelines established by government-sponsored enterprises such as Fannie Mae and Freddie Mac.
Conventional loans are widely used for primary residences, second homes, and investment properties. They often offer competitive interest rates, flexible loan terms, and a variety of financing options for qualified borrowers.
Conventional loans may be categorized as conforming or non-conforming. Conforming loans follow the loan limits and underwriting standards set by Fannie Mae and Freddie Mac. Loan limits vary by county and property type, and higher limits may apply in certain areas.
NEXA Mortgage, LLC offers conventional fixed rate loans, adjustable rate loans and interest only loans
Fixed Rate
With a fixed-rate loan, your interest rate remains the same for the entire life of the loan. This means your principal and interest payment stays consistent over time. Fixed-rate loans are commonly available in 30-year, 20-year, 15-year, and 10-year terms and are ideal for buyers planning to stay in their home long-term.
Adjustable Rate
An adjustable-rate mortgage starts with a fixed introductory rate for a set period, typically 3, 5, 7, or 10 years. After that period, the interest rate may adjust periodically based on market conditions. ARMs often begin with lower initial rates and may be a good option for borrowers who plan to sell or refinance before the adjustment period.
Interest Only
Interest-only loans allow borrowers to pay only the interest on the loan balance for a set period, typically 5 or 10 years. After the interest-only period ends, the loan converts to a standard amortizing payment for the remainder of the loan term. These loans can provide lower initial payments and additional financial flexibility.
The Details Are Important
One key factor in mortgage approval is the loan-to-value ratio (LTV), which compares the loan amount to the value of the property. LTV requirements vary based on property type, occupancy, and borrower qualifications.
Loan limits and financing guidelines may differ for single-family homes, multi-family properties, second homes, and investment properties. Our team can help you understand these requirements and determine the best loan structure for your purchase.
Patrick Grace
NMLS #: #2476993
📞 816-456-1843
✉️ pgrace@nexalending.com