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  • Colorado Springs Conventional Loans

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    Integrity First Financial provides home loans to greater Colorado Springs. Loans for all types of mortgages ranging from conventional to construction are available. A conventional loan is backed by Fannie Mae or Freddie Mac, the two entities that make up the Federal Housing Finance Agency (FHFA).

    Conventional home loans make up about 60% of the mortgage market, and include special mortgage programs such as the HomeReady mortgage and Conventional 97. Conventional loans, also called conforming loans because they conform to a set of standards set by Fannie Mae and Freddie Mac, can be used for a primary residence, second home, or rental property.

    When it comes to Colorado Springs loans, conventional loans have some special properties. Some of the favorable features a conventional loan offers include low mortgage insurance, if required at all, and a low down payment. For homes that do not have 20% or more in equity or a down payment, private mortgage insurance (PMI) is required, but it is usually cheaper than FHA PMI. Because PMI on conventional loans is risk-based, similar to car insurance, those with a clean credit history or higher credit score will often pay less for PMI on a conventional loan than if they chose an FHA loan. Once twenty percent in equity is achieved, PMI can be cancelled.

    Your friends in Colorado Springs loans, Integrity First Financial, will help walk through the process of understanding the entire loan process. The Conventional 97 loan is a mortgage that will get you into a home with as little as a 3% down payment. This mortgage product was a response to the FHA’s low down payment requirements. PMI typically remains for the life of an FHA loan, whereas with a conventional home loan it can be cancelled, conventional loans have become competitive with the FHA product.

    Conventional loans are available in fixed rate mortgages, adjustable rate mortgages (ARMs), and offer loan terms from 10 to 30 years. With a conventional fixed rate mortgage from Integrity First Financial, the Colorado Springs loan leaders, the borrower has the benefit of always knowing what their monthly payment will be throughout the term of their loan. ARMs typically offer lower payments early on in the loan term and are of benefit if the borrower plans to sell within a few years. However, with an ARM, the mortgage payment may vary drastically if interest rates experience significant fluctuations throughout the loan term.

    Conventional loans are best suited for those with a credit score of 680 or higher. Those with lower scores may qualify, however, they may find loans with lower fees. Conventional loans by Fannie Mae and Freddie Mac impose Loan Level Price Adjustments (LLPA) which cost more the lower the credit score.

    Other than regions designated high-cost areas by Freddie Mac and Fannie Mae, the conventional mortgage loan limit for 2016 is $417,000.

    For more information on these or other types of home loans, please call or email Integrity First Financial at (719) 385-0777 office, (719) 360-3767 mobile, or vic@integfirst.com.