Conventional loans are mortgage loans that are not insured by the government (like FHA, VA, USDA Loans), but they typically meet the lending guidelines that have been set by Fannie Mae or Freddie Mac. Compare the rate, term, and fees offered for this conventional option with the alternatives under consideration. Conventional offers are evaluated using credit, debt, income, and down-payment information; the requirements and minimum down payment depend on the specific program and offer.
A conventional purchase timeline depends on the application, property, and review. At first, you’ll start by filling out an application. If you work with a conventional loan officer from Superior Rate Mortgage of New England, you’ll get the benefit of our experience and access to multiple loan programs. This lets you compare available conventional programs, rates, and terms against your needs.
If you meet the initial requirements for conventional mortgage loans in Massachusetts or a neighboring state, we’ll show you tailored options for conventional mortgage rates and other terms. You can use this information to help you determine how much you might get in a loan.
If you agree to the terms and are ready to buy a specific property, we can start the underwriting process, which is a detailed look at your finances and the transaction. Timing depends on the information needed for the review. Once every box is checked, we can set a date to close on the loan.
Most Common Types of Conventional LoansFixed Rate Mortgages: Your rate and scheduled principal-and-interest payment stay fixed; taxes and insurance can change.
Adjustable Rate Mortgages: After the initial period your interest rate can change once a year.
Down-payment and equity requirements depend on the specific purchase or refinance program. Review the written offer for the amount required for this transaction. HARP ended on December 31, 2018; see the program overview for context, and use the refinance information to compare an available offer.
Most conventional loan programs allow you to purchase single-family homes, warrantable condos, planned unit developments, and 1-4 family residences. A conventional loan can also be used to finance a primary residence, second home and investment property.
Use the contact page to ask about a conventional loan option.
Fixed-rate choices on this page range from 5 to 30 years; the adjustable examples are 3/1, 5/1, and 7/1. A fixed rate keeps principal and interest steady over the term, while taxes, insurance, or escrow amounts can still change.
| Option | How the payment works | Confirm for your offer |
|---|---|---|
| Fixed rate | The interest rate and scheduled principal-and-interest payment stay fixed; listed terms run from 5 to 30 years. | Compare the scheduled principal-and-interest payment, total interest, and payoff date across terms; review taxes and insurance separately. |
| 3/1, 5/1, or 7/1 ARM | The initial rate period lasts 3, 5, or 7 years; after that, the rate may adjust annually. | When can the first adjustment occur, how is each adjustment determined, and what payment changes could result? |
Read the ARM article or compare payments with your own figures.