Conventional Loans
What is a Conventional Mortgage?
Unlike a VA home loan or FHA-insured loan, a conventional mortgage loan is not guaranteed by the federal government.
Saguaro Lending offers secured (with collateral) conventional loans. Secured home loans are typically offered at lower interest rates. Conversely, the higher down payment sometimes makes it more difficult for consumers to obtain a conventional loan. A failure to put 20% down typically requires you as the borrower to pay private mortgage insurance (PMI).
With a fixed-rate conventional mortgage, the interest rate and monthly principal and interest payment do not change for the entire term of the loan – an important consideration if rising interest rates are a concern in the foreseeable future.
Key potential advantages of a Conventional Loan for qualified applicants include:
- Buy a home with as little as 5% down (primary residence)
- Pay off your mortgage at any time
- The monthly payment may fluctuate due to escrows for taxes and insurance.
- Refinance up to 95% of your primary home’s value
Saguaro Lending offers Conventional Loan rates in Arizona and Washington.
