Scott Buehler and his team would love to assist you with a conventional home loan in either Utah, Arizona, Nevada or California. Ready to get pre-approved and shopping for homes? It just takes a minute to get started (follow the button below) or call (435) 590-1019.
Conventional loans adhere to the guidelines set by Fannie Mae and Freddie Mac. They may have either fixed or adjustable rates. Conventional loans can be used as your mortgage solution for primary residences, second homes, and investment properties. Conventional loans have occupancy stats requirements, loan to value requirements, and credit score requirements.
More than half of all new mortgage loans are conventional loans. As of 2023, loan amounts $726,200 or lower are considered conforming. Some high-cost counties are higher. See my state county list for Utah and California by going to the Utah conforming loan limits or California conforming loan limits pages.
Did you know? Conventional loans with Fannie Mae and Freddie Mac are compatible with our 3-2-1 seller-paid rate buydown solution to help make the beginning of your mortgage more affordable? Learn more at the seller-paid rate buydown page and combat this period of higher interest rates using seller-paid closing costs.
Why Choose the Conventional Loan Solution?
- Financing up to 97% of the purchase price (up to 95% with conforming high-balance loans).
- Low down payment on a primary residence purchase.
- Cancellable mortgage insurance at 80% loan to value.
- Loan amounts up to $726,200 in 2023.
- Choose between a 30, 20, 15 and 10-year term.
- High-cost counties offer higher conforming limits.
- Fixed rate for the life of the loan.
- Credit scores as low as 620.
- Adjustable-rate and fixed mortgages available.
- Only pay more if taxes or insurance goes up.
- Lower closing costs.
What is a Non-Conforming Loan?
A non-conforming conventional loan is one that doesn’t adhere to Fannie Mae or Freddie Mac guidelines and isn’t backed by a government loan, including FHA, USDA, or VA.
One of the more common types of non-conforming loans is the jumbo loan solution. A jumbo loan comes with higher loan limits than conforming loans. There are other types of non-conforming loans that may help the borrower qualify for property that they couldn’t with a conforming loan.
Why Are Conventional Loans So Popular?
Unlike most government loan solutions, conventional loans do not have a mandatory up-front mortgage insurance premium (UFMIP). One example is the FHA home loan solution which requires 1.75% of the loan amount as a financeable UFMIP. On a $450,000 loan, that would add $7,875 to the loan amount.
Another advantage is your conventional mortgage insurance is cancellable as early as 80% Loan-to-Value (LTV). Your MI automatically cancels at 78% LTV. If you start your Conventional loan with an 80% LTV, there’s no mortgage insurance needed.
You may experience lower appraisal fees going conventional over FHA or other government loans backed by HUD. Since HUD insures its mortgages on behalf of lenders, qualified and approved borrowers, it sets its own guidelines and rules pertaining to appraisals as well as other guidelines.
More options. Using a conventional mortgage lender as your solution provides more options including shorter loan terms and larger loan limits. A conventional loan usually offers an option to pay taxes and insurance directly, without adding them to your monthly mortgage payment through an escrow account. If you’d like the flexibility and freedom to pay taxes and insurance separately, a conventional mortgage is a great choice.
Competitive Rates and Countless Options
Homebuyers seeking a conventional loan typically enjoy the largest selection of loan options at the most competitive rates. Since risks and guidelines are well-defined, conventional loans are popular with both mortgage lenders and homebuyers. Most lenders will offer several Fannie Mae and Freddie Mac programs tailored to different homebuyer situations, which means you can shop for the most competitive rates and terms to maximize how much you can get from a conventional loan.
How Do I Calculate My Conventional Mortgage Payment?
Try my Conventional Utah mortgage calculator. The costs are estimated for Utah property tax, hazard insurance and mortgage insurance to give you a good idea of your mortgage payment.
In California? Consider increasing the property tax from 0.5% to 1.25% for a closer look into your California mortgage payment estimate.
Tip: Use the “Add Extra Payments” option with the calculator above see how adding $50, $100 or more to your monthly payment will drastically shave years off your loan!
When you find yourself saying “I need a conventional home loan lender” consider Scott Buehler who is licensed in Utah, Arizona, Nevada and California. Want to learn more? See the about Scott Buehler page.
Disclaimer: Loan terms and limits subject to change. This page is meant for educational purposes and is not a commitment to lend. To qualify for a home loan, please speak to Scott Buehler or apply online.