Conventional Loans

Home Mortgage Specialists, Inc. offers are conventional loans. Conventional loans are mortgage loans offered by non-government sponsored lenders. A conventional mortgage is offered by a bank and is not insured by the federal government and follows guidelines set by Fannie Mae and Freddie Mac. This makes it a slightly higher risk for the bank, so the qualifications can be more such as higher credit score minimums and lower debt to income ratios. Like other types of mortgages, the interest rate that you pay is based on the 10 Year Treasury Yield, credit score and loan characteristics. A conventional mortgage could have a fixed rate or a variable interest rate. Conventional loans have fixed terms from 30 Years, 20 Years, 15 Years, and 10 Years. Adjustable Rate Mortgages are usually amortized over 30 Years.

What is a Conventional Loan?

While many think that a 20% down payment is required for all conventional loans, many lenders now offer low down payment options.

Conforming vs. Non-Conforming Loans

Conventional loans are split into two types: conforming and non-conforming.

Benefits of Conventional Loans

Conventional loans are intended for borrowers with better income and credit scores, and have good rates and flexibility.

Conventional Loan Limits

Different counties have different limits on how much you can borrow for a Conventional Loan.

Get Pre-Approved for a Conventional Loan

If you are looking to purchase a home in Peoria, or anywhere in Illinois, contact Home Mortgage Specialists, Inc. at (309) 222-8286 for more information, or simply fill out the form on this page.