Conventional Loans in Omaha, NE
The mortgage loan experts at Mutual 1st Federal have helped homeowners across the area secure conventional loans that fit their budget and unique needs. Learn more about these great options that have become one of the most popular choices among homebuyers nationwide!
What Is a Conventional Loan?
A conventional loan is one that's not backed by any government entity like a FHA Loan will be. Instead, conventional loans follow guidelines that are set by Fannie May and Freddie Mac— the two agencies that have helped standardize mortgage lending throughout the United States.
What Are the Benefits of a Conventional Loan?
For many homebuyers, conventional loans are usually easier to come by than other types of home loans. In the first quarter of 2018, conventional loans made up nearly 74% of new home sales, which was the highest share in a decade.
The reason why this number has increased over the last decade is due to the ability for homeowners to find more flexibility. Conventional loans typically have fixed interest rates and terms that vary between 10, 15, 20, and 30 year options, making it easier for people to budget simply.
What's even better than that is some conventional loans can be short-term, adjustable-rate mortgages, which have become a popular option among homeowners who know they won't be staying in their residence for a long period of time. These loans sometimes come with a lower interest rate, which is an incentive for homebuyers.
Is a Conventional Loan the Best Choice?
For some homebuyers, conventional loans will be the best option, especially if you have good credit and are looking for a longer term on your loan. With both fixed and adjustable rates available among conventional loans, there's great flexibility to ensure you can pay what you agreed upon with the lender.
But there is a downside. Since these loans are not backed by a government entity, you'll need excellent credit to be approved. But don't fret—even if you don't have the perfect credit score, you still have options!
Have less-than-stellar credit? FHA Loans have made it easier for many first-time homebuyers to apply for and be approved for a loan. Learn more from Mutual 1st Federal today!
Contact Mutual 1st Federal
If you're ready to apply for a conventional loan, contact the team
at Mutual 1st Federal today to set up an appointment with one of our mortgage loan experts!