Flanagan State Bank Mortgage Division
Conventional Mortgage Loans
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Conventional Mortgage Loans

Conventional Mortgage Loans

Are you looking for a mortgage loan without some of the restrictions or guidelines found in the FHA or VA loan programs? Do you have a strong credit history? If so, a Conventional home loan program might be a good fit for you. We offer competitive interest rates and quick, efficient closings so you can get into your new home as soon as possible. We’ll look at all possible options to make sure you get the best home loan for your needs. Work with a local lender familiar with Conventional home loans—contact your nearest location to learn more!

What is a conventional home loan?

Conventional mortgages are originated and serviced by private mortgage lenders like us. Conventional loans usually “conform” to lending rules set by the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). You can choose between a fixed or variable interest rate, and from a variety of term lengths.

Why choose a conventional loan?

Benefits of this type of mortgage include:

  • Low interest rates
  • Low down payment options
  • If you have to pay PMI, it will go away once you reach 20% equity
  • More flexibility to create a customized loan package for you

If you’re not sure you have a strong enough credit score to qualify for a conventional loan, consider a government home loan program such as FHA, USDA, or VA. These types of mortgages are federally-insured, so lenders like us can approve borrowers with lower credit scores and/or who need to make lower down payments.

ARM vs. Fixed-Rate Loans

ARM loans have a variable interest rate that can adjust up or down according to the benchmark it’s attached to. There is usually an introductory period with a very attractive fixed interest rate. If you’re willing to risk having your rate rise, or plan to move or refinance after the introductory period, an ARM loan could be a great option for you.

Fixed-rate loans keep the same interest rate for the life of the loan. You can expect predictable monthly payments that are easy to budget for. If average rates fall, you can always refinance to get a lower rate. If you plan to stay in your home long-term, a fixed-rate loan could be a great option for you.

Contact us to learn more about conventional loans!

To get started with your conventional mortgage application, work with a local lender familiar with conventional home loans—contact your nearest location to learn more!