WHAT IS A CONVENTIONAL MORTGAGE LOAN?

When you look into the types of mortgage loans available on the market, you have either loans that are insured (or, backed) by the federal government, or those offered by private mortgage lenders such as banks, credit unions or other lending institutions.

Loan options that are backed by the government include FHA loans and VA loans, guaranteed by either the Federal Housing Authority or the US Department of Veterans Affairs.

All about Conventional Loans

Term: Conventional mortgages are generally offered in term of repayment periods of either 15 or 30 years, although some lenders also offer terms of 20 years.

Credit Needed to Qualify: The credit score you’ll need to have to qualify for a conventional mortgage will vary somewhat depending on each lender’s specific requirements, but generally a score of 620 is the minimum score needed to obtain a mortgage loan. In order to qualify for the most competitive and lowest interest rates, you’ll want to have a score of at least 740.

Loan Limits: There are two buckets of conventional mortgage loan limits: loans will either be “conforming” or “non-confirming”. Conforming loans are mortgage loans that conform to government sponsored enterprise (GSE) guidelines, and are loans that (as of 2014), were $147,000 and below. Areas of the US which have been designated as high-cost living areas have higher limits for conforming loans – up to about $720,000. Non-conforming loans are loans which, as their name suggests, don’t conform in one way or another to the set guidelines and standards for mortgages. Often that is because the loans are for amounts higher than those listed above for conforming loans. Non-conforming loans for amounts over those listed above are also known as “jumbo loans”, and they usually carry a higher interest rate than conforming loans because jumbo loans are harder for lenders to resell on the secondary market because of the terms of the loan, and the amounts owned by borrowers. Additionally, private mortgage loans made to borrowers who don’t qualify for a conforming loan due to low credit scores or a recent bankruptcy are other types of non-confirming loans.

When you’re ready to start looking at purchasing a home, you’ll want to compare your options between FHA, VA and conventional mortgage loans to determine which loan option is best for you and your family. Conventional loans are a great option for well-qualified home buyers: those with credit scores of at least 740 and who have larger down payments of the total home purchase price.

Welcome To Arlington Financial. . .

Established in 1992, Arlington Financial has built a strong reputation as an outstanding diversified mortgage company serving the lending needs of real estate professionals, builders, law firms and individual home buyers. . .

We're a full service mortgage brokerage company with an experienced staff offering expertise in every area of mortgage lending...from purchases to refinances.We have access to a full range of mortgage sources and all of our lending specialists are dedicated to finding the right loan - with the best rates, terms and costs - to meet our clients' unique needs. But that's just the beginning of our service, throughout the lending process we provide regular loan updates and progress reports so clients always know the status of their loan. . .

When you apply to a Bank, the mortgage processor will lead you to believe all through the process that it looks fine just to get your business. However, what you don't know is that after you leave the Bank, your file is then shipped to a central processing facility somewhere in the US. This is where all the applications from all of the branches, in all of the states are processed. The local Bank that you just left is not allowed to process your mortgage application, it all happens at the Central Processing Facility. . .

As a Mortgage Broker we can check your credit, employment, assets, down payment, property appraisal etc. From that point we can then determine which Bank to send your file to and guess who does the processing for the Bank, WE DO. . . . .

Also the hype that borrowers should not use a broker because the Bank is cheaper is not true. We can match most banks and in some cases beat them. . .

Arlington Financial does not charge the Borrower any fees such as Application, Processing, Commitment or Rate Lock. Your closing costs with a High Street Bank verses Arlington Financial are going to be very similar. Arlington Financial provides an upfront fee sheet showing your Downpayment, Loan Amount, Interest Rate, Title, Appraisal, Credit, NYS Mortgage Tax, Attorney Fee etc, which will give you an idea of what your out of pocket costs and monthly payment are going to be in relation to your purchase or refinance. We are advocates of complete transparency in educating you with reference to your Mortgage process. . .

The primary difference being, we answer the phone and/or call you back. You get to check the status of your application during the process and the human factor is prevalent at all times.

Arlington Financial Corporation [NMLS ID: 5722] Registered Mortgage Broker In CT, FL, NJ, NY & PA Banking Departments. All Loans Provided By 3rd Party Providers.