Conventional Loans

Conventional loans are mortgage loans offered by non-government sponsored lenders. A conventional, or conforming, mortgage adheres to the guidelines set by Fannie Mae and Freddie Mac. It may have either a fixed or adjustable rate. Homequest Mortgage LLC offers conventional mortgages in Keizer, as well as all of Oregon.

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. There are conventional loans with as low as a 1% down payment in certain scenarios.

Conforming vs. Non-Conforming Loans

Conventional loans are split into two types: conforming and non-conforming. Non-Conforming would include Jumbo loans (loan amount above the county loan limit of $453,100 for most counties), or loans which go outside of standard underwriting guidelines. An example would be a loan which allows someone to buy a home immediately after a foreclosure with no waiting period – these loans often require higher down payment and rates, but allow for situations that may not fit into the box of conforming loans.

Benefits of Conventional Loans

Conventional loans are intended for borrowers with better income and credit scores, and have good rates and flexibility. There is often more flexibility and fewer restrictions on conventional loans. One of the benefits is that a conventional loan is the only loan type allowing for you to purchase a rental property. FHA, VA, and USDA (government backed loans) are only for owner-occupied properties.

Conventional Loan Limits

Different counties have different limits on how much you can borrow for a Conventional Loan. Most of Oregon has a conventional loan limit of $453,100 on single family homes, $580,150 on duplexes, $701,250 on triplexes, and $871,450 on fourplexes.

Get Pre-Approved for a Conventional Loan

If you are looking to purchase a home in Keizer, or anywhere in Oregon, contact Homequest Mortgage LLC at (503) 339-7914 for more information, or simply fill out the form on this page. We look forward to working with you soon!