One of the most popular loan programs available in today’s market is the conventional loan. A conventional, or conforming loan, is a mortgage loan that is not guaranteed, or insured, by a federal government agency. This may be the perfect home loan for your purchase in Charleston, Mt. Pleasant, James Island, and the rest of South Carolina.
Conventional loans follow the guidelines set forth by Fannie Mae and Freddie Mac. These organizations, buy and sell conventional mortgages as well as setting restrictions on the maximum loan amount for borrowers. The loan limit for South Carolina is $424,100.
Conventional loans, have many advantages like flexibility when it comes to payng certain loan fees. You also have flexibility to the appraisal. Being the Biggest Little Lender in South Carolina, we have access to more options than just going to a bank. We can get creative and shop the best rates and and terms around.
There are two options for conventional loans; fixed rate and adustable rate programs.
Fixed rate programs are exactly that, you have a fixed interest rate for the entire life of the loan. When rates are low this is a great option because if rates go up you do not have to worry about it affecting your loan and payments. Fixed rate loans come in 15 year and 30 year options.
With adjustable rate programs, your interest rate can fluctuate causing your loan payment to rise or decrease. Some of the more popular adjustable rate programs are those that are fixed for a certain amount of years and then turn into adjustable rates. These programs include 3/1 arm, 5/7 arm, 7/1 arm, and 10/1 arm. The first number is the amount of years the loan will be fixed before it turns into a fully adjustable rate.
Even with the flexibility, conventional loans have more strict requirements including a higher down payments but do have lower interest rates.
Find out if a conventional loan is right for you, click here to get started or call 843-884-8133.