Conventional Financing for Real Estate
The Conventional Financing options are considered the standard for real estate purchases and refinances. Delta Trust Mortgage uses the underwriting guidelines established by either the Federal National Mortgage Administration (FNMA or “Fannie Mae”) or the Federal Home Loan Mortgage Corporation (FHLMC or “Freddie Mac”). Loans created using these guidelines allow lenders greater liquidity options and create a more uniform loan product. The benefits to the consumer are a much lower rate than would be available on a traditional bank note, as well as long-term fixed rate financing.
Conventional Financing offers the following benefits:
- Fixed rate financing for 30, 25, 20, 15 or 10 year amortizations
- Down payments as little as 3%
- Adjustable Rate Mortgages with several different options and rate caps
- Loan amount up to $417,000
- No mortgage insurance costs with a 20% down payment
- Many options for mortgage insurance depending on the transaction parameters
- Seller is allowed to pay buyer’s closing costs and prepaid items (with certain restrictions)
- Minimum usable credit score as low as 620 depending on certain loan parameters
