A conventional loan is a home loan that is not insured by a government agency. Conventional loans typically require a down payment and include “out-of-pocket” closing costs.

  • Down Payment: Yes
  • Appraisal Type: Primary Residence, Investment, Second Residence
  • Loan Purpose: Purchase or Refinance

Conventional loans typically require a down payment. The amount of the down payment determines if the borrower can avoid paying Private Mortgage Insurance (PMI), which protects the lender in case of default. To avoid paying PMI, a buyer must have at least 20% equity in the property (put a 20% down payment down). Where PMI is needed, borrowers are required to pay the PMI premiums as part of their regular monthly mortgage until sufficient equity in the property is reached.

There are two types of Conventional mortgages, Conforming loans and Non-Conforming (Jumbo) loans. Conforming loans are conventional mortgages that have a loan limit set by Fannie Mae and Freddie Mac. Loans that exceed the conforming loan limit are known as Non-Conforming, or Jumbo, loans. Usually rates on Jumbo loans are higher than those on Conforming loans.
 

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1st Mariner Bank - NMLS: 408251
3301 Boston Street
Baltimore, Maryland 21224
Phone: (888) 561-2265
Email: info@1stmarinerbank.com

 

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Certain restrictions apply. Loan approval subject to borrower qualification, completion of application and verification of homeownership. Rates and programs are subject to change without notice. Satisfaction of credit qualifications and occupancy. Loan pricing can only be locked through a home mortgage consultant. This collateral piece is provided as a convenience, does not serve as a substitute for a borrower's actual loan documents, and is not a commitment to lend. Borrowers should become fully informed by reviewing all of the loan and disclosure documentation provided. While we believe these products could be beneficial to you, there may be other mortgage products we can offer you for which you may qualify. We would also be happy to discuss those options with you. For more helpful information about residential mortgage products, please visit http://www.1stmarinerbank.com/loanoptions.