Mortgage no longer just covers the borrowing opportunities for conventional homes. Conventional mortgages (think traditional home buyer loans) are loans not offered or backed by government entities and are lent by private lenders, banks, credit unions, and mortgage companies. They are the most common loans home buyers use to acquire property. 

The process of selecting the right mortgage is important. Whether you are buying a single family home, a condominium or a multi-unit rental property, by making the decision to refinance your mortgage at a higher interest rate, you will be saving yourself thousands of dollars over the life of your loan. By working with a mortgage expert, you will be able to find a lender who specializes in providing the best deals for their clients-not just any old lender that might be located anywhere.

In addition, by working with a mortgage broker who specializes in the type of mortgage you are interested in purchasing, you will ensure that you get the best interest rate possible, regardless of the current interest rates and fluctuating market conditions. By using the knowledge and expertise of local real estate brokers to help you through the mortgage purchasing process, you can rest assured knowing you are making a solid investment in your future.

In order to avoid paying extra money for fees and/or interest rates when refinancing your mortgage, it is important to take the time to do your homework before approaching any lender. Although you may not have a stellar credit score, there is nothing wrong with starting your search with a basic credit report.

If you have had a history of accomplishment when it comes to meeting your financial obligations, then your chances of qualifying for a competitive mortgage rate are much better. The same is true if you have been consistent with your on time mortgage repayments. Once you have gone through your credit report with a fine tooth comb, and you have decided on a lender that fits both your needs and your wallet, you will be well on your way to enjoying the home purchase that you want so much.

Types of Conventional Mortgages

There are four types of conventional mortgages you may use to finance a property with Monroe Funding Corp. 

Jumbo mortgages are used for properties located in a tight market or for homes considered “luxury property.” Financing on these properties exceeds the Federal Housing Finance Agency (FHFA) limits, therefore, it cannot be guaranteed or secured through major lenders Fannie Mae and Freddie Mac. 

Federal Housing Administration (FHA) loans are issued by FHA-approved lenders only and are used for lower-to-moderate income borrowers, making them the most common conventional mortgages. FHA loans have lower minimum down payment requirements. Through Monroe Funding Corp’s FHA loans, we can help you secure a minimum of 3.5% down and a 500 plus credit score. 

The U.S. The Department of Veterans Affairs offers mortgage lending options to veterans and surviving spouses and has competitive interest rates. VA loans allow you to purchase property with small down payments, cutting private mortgage insurance requirements. They also do not have prepayment penalties like other forms of conventional mortgages. 

Refinancing is an option available for those who already have a mortgage but wish to refinance with a lower rate or if they want to use the equity available from their home to consolidate debt and finance home improvements. 

Monroe Funding Corp offers conventional mortgages and hard money lenders Florida. For more information on Tampa hard money lenders or to get started borrowing with us, please visit us online or call 954.419.3539.