Conventional Loans are the most common loan type in the industry and are loans at or below the current conforming loan limits of $726,200 in most parts of the country, with some exceptions for high-cost areas. Conventional Loans come in all shapes and sizes, with Colonial offering Conventional loans with down payment as-low-as 3%!
- Simply a loan that is not issued or insured by a federal agency
- Usually a 30-year fixed rate term
- Typically requires at least a 10 - 25% down payment, but can go as low as 3% for first-time home buyers.
- Requiring larger down payments, conventional loans may offer better interest rates than non-conventional loans
- Fixed and Adjustable-Rate options
- 620 Minimum Credit Score
- Grants and gift funds for down payment acceptable
- Loans with less than a 20% down payment may require private mortgage insurance (PMI)
Video: Colonial's New Online Mortgage Application