Conventional Loans

Simplify your mortgage by optimizing your income, assets, and credit

 

Conventional Loans

Dreaming of Homeownership?

Owning your own home is more than just a milestone; it’s the foundation for your future. If you’re searching for a financing option that’s both flexible and reliable, conventional loans are an excellent choice. Let’s explore why conventional loans remain one of the most popular paths to homeownership and how they can help make your dream a reality.

What Are Conventional Loans?

Conventional loans are mortgage loans that follow the guidelines set by Fannie Mae and Freddie Mac. Unlike FHA or VA loans, these loans are funded by private lenders and investors. The flexibility of conventional loans—including a range of terms, interest rates, and down payment options—makes them ideal for many buyers.

Why Choose a Conventional Loan?

  • Customizable Loan Terms:
    Choose a repayment term that fits your financial goals, whether it’s a shorter term with higher monthly payments or a longer term for lower payments.

  • Competitive Interest Rates:
    Your credit score, down payment, and loan term influence your rate, often allowing for better savings compared to other loan types.

  • Higher Loan Limits:
    Borrow more to secure your dream home with higher loan limits than those offered by FHA loans.

  • No Mandatory Mortgage Insurance Premiums:
    Avoid mortgage insurance entirely with a 20% or larger down payment, saving you thousands over the life of the loan.

  • Option to Cancel Private Mortgage Insurance (PMI):
    If you start with less than a 20% down payment, you can request to cancel PMI once you build enough equity, reducing monthly payments.

Qualifying for a Conventional Loan

Securing a conventional loan is straightforward, but meeting these criteria will help streamline the process.
      • Credit Score: A score of 620 or higher is typically required. Higher scores often result in more favorable rates.
      • Debt-to-Income Ratio (DTI): A DTI of 36% or lower is ideal, though some borrowers may qualify with up to 50%.
      • Down Payment: Down payments can start as low as 3%. For the best terms, aim for 20% or more to eliminate mortgage insurance.
      • Income and Employment Stability: Consistent employment and steady income over the past two years demonstrate your ability to repay the loan.
      • Property Appraisal: An appraisal ensures the home’s value aligns with the loan amount. This step is essential for final approval.

Let’s Make It Happen!

Whether you’re buying your first home or upgrading to your dream home, a conventional loan can provide the flexibility and advantages you need. Contact Capital City Mortgage today to learn more and take the first step toward making your homeownership dream a reality.

Local Loan Options

Nebraska Mortgage Options

Nebraska residents have several mortgage options available to them. Conventional mortgages, with low down payments. FHA loans, require a smaller down payment and are generally easier to qualify for. VA loans are available to eligible active-duty military personnel and veterans. USDA loans help borrowers in rural areas with low to moderate-income purchase homes. Additionally, Nebraska residents may be eligible for various state and local first-time homebuyer programs and down payment assistance programs.

Lincoln Mortgage Options

Residents of Lincoln, NE can choose from a variety of mortgage options. Traditional mortgages are available with low down payments. An FHA loan is also an option, requires a lower down payment, and is generally easier to qualify for. VA loans are available to eligible active-duty military and veterans. USDA loans help rural low- to moderate-income home buyers. Additionally, Lincoln, Nebraska residents may be eligible for several state and local first-time buyer and down payment assistance programs.

Omaha Mortgage Options

Residents of Omaha, NE can choose from a variety of mortgage options. Traditional mortgages are available with low down payments. FHA loans are also an option, require a lower down payment, and are generally easier to qualify for. VA loans are available to eligible active-duty military and veterans. USDA loans help rural low- to moderate-income homebuyers. In addition, Lincoln, Nebraska residents may be eligible for several state and local first-time buyer and down payment assistance programs.

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