Colorado Conventional Mortgage Loan
A Colorado conventional mortgage is one that includes all housing loans that aren’t guaranteed (or insured) by a government agency. A conventional loan is generally referring to a mortgage loan that follows the guidelines of government sponsored enterprises (GSE’s) like Fannie Mae or Freddie Mac.
Conventional loans can be classified as either “conforming” or ”non-conforming“. Conforming loans follow the terms and conditions set by Fannie Mae and Freddie Mac. Non-conforming loans don’t meet Fannie Mae or Freddie Mac guidelines, but they are also considered conventional and are often referred to as Jumbo loans when they are above the Fannie Mae or Freddie Mac maximum conforming loan amounts for a given geographic area. Colorado conventional mortgages are granted by private Colorado banks and lenders and normally have stricter eligibility requirements than government-insured loans.
By definition, a conventional loan is any mortgage that is not guaranteed or insured by the federal government.
Why choose a Conventional Loan vs. and FHA or other type of mortgage loan?
- Colorado conventional mortgages are likely the best home loan for borrowers with excellent credit and a substantial down payment.
- There are no prepayment penalties for a conventional conforming mortgage.
- A conforming loan can be used in for the purchase of a primary residence, second home or investment property.
- A conventional mortgage is available all areas of Colorado, provided a market exists for the property and the home meets minimum property standards.
- A conforming loan may be used to purchase or refinance a new or existing one to four family home in urban and rural areas of Colorado, including manufactured homes on permanent foundations.
- A conventional house loan can be offered at terms of 10, 15, 20, 25, 30 and sometimes even 40 years. The terms of 15 and 30 years often carry the lowest interest rates.
- A conventional loan may be available as either an adjustable rate mortgage (ARM), or a fixed rate mortgage.
Different Colorado Home Loan Programs:
Colorado FHA Streamline Refinance | Colorado HARP Loan | Colorado VA Streamline Refinance