Understanding the differences between the loan options currently available to you can help avoid unnecessary time and expense when trying to qualify for a mortgage in Pasadena. One of the most common loan programs is a conventional mortgage. This refers to a loan that is not insured or guaranteed by the federal government.
Conventional Mortgage Highlights
- Lower interest rates for borrowers with good credit
- Flexible mortgage insurance options
- Fewer penalties and fees
- Flexible loan terms
Conventional Home Loans Pasadena CA
If the loan amount is under a certain limit, these loans adhere to guidelines set by Fannie Mae and Freddie Mac and are referred to as conforming loans. If they are above those limits, they are referred to as non-conforming loans. The maximum limit for a conforming loan depends on the county and state the property is located in. To find out the limits in your area click here.
Conventional loans can either be fixed-rate or adjustable-rate. With a fixed-rate mortgage, borrowers get the luxury of knowing their interest rate is set for the entire term of the loan. On the other hand, with an adjustable-rate mortgage, the borrower has an introductory rate for a fixed period followed by periodic adjustments according to the specific benchmark.
If your credit and income qualify and you want to purchase a new home in Pasadena, a conventional loan may be the right choice for you. Conforming loans require a down payment as little as 3% for a fixed-rate term or 10% for an adjustable-rate.
Restrictions apply. See what you qualify for today!This is not a commitment to lend. Prices, guidelines and minimum requirements are subject to change without notice. Some products may not be available in all states. Subject to review of credit and/or collateral; not all applicants will qualify for financing. It is important to make an informed decision when selecting and using a loan product; make sure to compare loan types when making a financing decision.