Is a Conventional Mortgage Loan in Your Future?

If you are looking to buy a second home for a vacation getaway or just because you need to upgrade to a newer home, you may be on the market for a home mortgage loan that is available to more experienced home buyers like you. Conventional mortgages, which make up about 30-50% of all home loans, are generally the types of financing you will be able to obtain, based on your particular needs. Here’s why a conventional home mortgage loan could be in your future.

What is a conventional loan?

A conventional home loan is any type of home mortgage loan arrangement that is for home buyers who have already purchased a home in the past and are looking for a program to buy another home. Unlike first time home buyer loans, conventional loans are not covered by FHA loan guidelines, instead generally requiring at least a 3% down payment on the purchase price of the new home. A conventional loan is probably not a good choice for a first time home buyer that can qualify for additional programs like those provided by the government.

However, just as in any other home mortgage in Denver, the loan types are similar in that you can obtain a 15 to 30 year fixed rate mortgage with low monthly payments. Most consumers have already earned equity in their present homes, so it’s not uncommon for a new home purchase to be partly funded in the form of refinancing based on the equity of the existing home or by selling it outright and using the profits as a down payment.

Will a conventional loan work for you?

Making the decision to work with a mortgage company like Naranche can be your best source for information about conventional loans. Because they are more complex than a first time home buyer program and they may involve taking out larger loans at the jumbo loan limit range, it can save you a lot of time and money to work with an experienced home mortgage banker, rather than trying to tackle this alone.

A conventional loan will work for you when you need to finance a second home purchase and have some capital to work with as far as a down payment and a decent credit score. In addition, conventional loans typically carry lower interest rates than jumbo loans or those received from private investors which can save you even more money in the long run.

If a conventional loan is in your future, let Naranche find it for you

Once you have made the decision to start the process of buying a secondary home, look to the caring experts at Naranche to help you. For decades, Naranche has been serving the Colorado home buyers of the Castle Rock, Cherry Hill, Denver, Golden, Littleton and Parker areas. With their common-sense approach to doing things, you will get approved and into your new home in much less time than if you tried to do this on your own. You will save money too, since Naranche has access to credit enhancing solutions and creative financing programs. When you see a conventional loan in your future, think Naranche.