Conventional Loans

A Conventional Loan: Catered to Your Needs

Are you looking to purchase a home in the St. Johns, FL, area and need the help of a great mortgage broker? At North Star Mortgage Network Inc., our certified brokers work with a number of qualified lenders to find the best deal for each client’s unique situation. Conventional loans come in all shapes and sizes, with varied interest rates, down payments and terms. We will help you find a conventional loan package with fast pre-approval so you can choose the home you want and close, fast. Contact North Star Mortgage Network Inc., to schedule a free consultation about your finances and your aspirations to own a home.

Conventional Loans Vs. Nonconventional Loans

A conventional loan is “conventional” because it is not guaranteed or insured through a federal government agency. Instead, conventional loans are a two-party agreement between you, the borrower, and a private lending institution. They differ from VA loans and FHA loans, which are partially insured by the U.S. government. A great deal of mortgages that exist today are conventional loans.

Conventional Loans with Options

There are two types of conventional loans: Conforming and nonconforming. A “conforming” loan falls within the lending limits set through lending giant companies Fannie Mae and Freddie Mac. They contrast with “jumbo” or “nonconforming” loans, which exceed lending limits (usually around $420,000 or more). Conventional loans – both conforming and nonconforming – may have fixed or adjustable interest rates, meaning mortgage payments are set at a certain amount for the life of the loan, or may vary as time goes on. At North Star Mortgage Network Inc., we provide both conforming and nonconforming conventional loans.

 What’s Unique About a Conventional Loan?

Many of the conventional loans we provide have better interest rates than “nonconventional” loans that are insured by the federal government. Your unique rate depends upon a few factors, including your financial history, credit score and income. We work with several lenders to offer competitive rates to you.

Traditionally, you will need to have a down payment of at least 20% to obtain a conventional loan. You may also need to obtain private mortgage insurance (PMI), which protects you in the case of default. PMI is a three-party agreement between you, North Star Mortgage Network Inc., and a third party that insures your loan. We can help you determine what combination of PMI and down payment make the most sense for you long term.

Why Work with North Star Mortgage Inc.?

Our clients enjoy the high level of customer service we provide throughout the entire process of applying for and purchasing a home. We work with clients of all types, who are looking for different term lengths (30, 20, 15 or 10), different loan amounts (even jumbo loans), and different rates. We offer fast pre-approval for loans that big banks simply can’t push through as fast. We have worked in the St. Johns area for a long time, and we know the market here. Contact us to get started on your journey to purchase a home today.