Conventional Loans

Conventional Loans: Home Financing Solutions for All Walks of Life

Are you beginning the journey toward owning a home? If so, Boise River Lending offers a full spectrum of home financing to consider. Conventional loans are one of the most common types of home financing, offered through private lenders. They can be customized with a range of interest rates and terms to help you achieve your goal of becoming a homeowner within your budget. If you are considering purchasing a home in Boise, Meridian, Twin Falls, or surrounding Treasure Valley or Magic Valley, ID, begin your journey with us. We have the experience and personalized care you deserve when it comes to conventional loans. Contact Boise River Lending today.

Conventional Loan Basics

Also known as “conventional mortgage,” conventional loans are one of the main two divisions of mortgages. They are not insured or funded in any part through the federal government. This distinguishes them from nonconventional mortgages, which are insured or funded in part through the government. Examples of nonconventional mortgages include FHA (Federal Housing Administration), USDA (U.S. Department of Agriculture) and VA (U.S. Department of Veterans Affairs) loans.

Conventional loans typically have more stringent approval guidelines than nonconventional loans, because they are not insured through the government. They do, however, typically have better interest rates and save clients more money over time. We can help determine quickly whether a conventional loan

Conforming and Nonconforming Loans

Conventional loan types are further divided into “conforming” and “nonconforming” loans. While both types of conventional loan are fully funded and insured through private lenders, a loan is deemed conforming or nonconforming based upon the value of the loan. Conforming loans are those with a maximum limit of $424,100 for a single-family home. Conforming loans are purchased through major mortgage investors Fannie Mae and Freddie Mac. Nonconforming loans, also known as “jumbo” loans, exceed $424,100, and are not purchased by Fannie Mae or Freddie Mac.

Jumbo loans typically require a costlier down payment than conforming loans, because they pose more of a risk to lenders. They typically also have slightly higher interest rates and usually have adjustable interest rates, versus conforming loans which often have fixed interest rates.

Conventional or Not, We Find the Right Financing for You

Our team will work closely with you to evaluate your finances and your goals as a home owner to determine if you are better suited for a conforming or nonconforming conventional loan or if you may be eligible for a government-backed nonconventional loan. If you are searching for a home in Boise, Meridian, Twin Falls, or surrounding neighborhoods, contact Boise River Lending today. We are happy to answer any questions you may have or to schedule a consultation if you are ready to get started on the path to homeownership.