Conventional Loans

Conventional Loans with Competitive Rates

At AIM Financial, we work closely with our clients to ensure they find their home financing for their needs. Conventional loans are privately insured, privately funded mortgages with a broad spectrum of terms and rates to consider. If you have a credit score of 620 or above, we will work arduously to find you a conventional mortgage with a competitive rate. We serve clients in Middleville, Grand Rapids, Wyoming, Sparta, Caledonia, Kentwood, and surrounding Michigan. For a complimentary quote, contact AIM Financial today.

Conventional Loans with Competitive Benefits

A “conventional” loan is a common mortgage choice for clients in good financial standing. They are not funded or insured in any way through the federal government, unlike non-conventional loans. Non-conventional loans include FHA (Federal Housing Administration) VA (Department of Veterans Affairs) and USDA (U.S. Department of Agriculture) loans, and these are backed through the federal government. Non-conventional loans typically have higher rates than conventional loans, but they provide an outlet for clients with less-than-great credit to purchase a home.

Conventional loans can finance primary homes, secondary or vacation homes, condos, manufactured homes, rental properties, and much more. Restrictions regarding what types of homes are available for purchase are much more flexible with conventional loans than with non-conventional loans.

Conforming and Nonconforming Loans

Among conventional loans, there are two basic types of financing: conforming and nonconforming loans. Conforming loans are those that fall beneath lending limits set by mortgage giants Fannie Mae and Freddie Mac. These government-sponsored entities (GSE) purchase conforming mortgages in bulk and sell them to investors. Ultimately, what this means for you is more competitive rates and more options in conventional lending.

Any mortgages that exceed that limit are nonconforming, or “jumbo” loans. In our area, for a single-family home, jumbo loans are those that exceed $424,100. Higher limits exist for two-to-four-family homes financed with conventional loans. Jumbo loans, also known as portfolio loans, typically require a larger down payment (of at least 20%) and a low debt-to-income ratio to qualify. AIM Financial offers competitive rates for conforming and nonconforming conventional loans.

Qualifying for a Conventional Loan

Conventional loans are typically only available to clients in good financial standing. At AIM Financial, we require that clients have a credit score of 620 or higher. Clients should be prepared to put down at least 20% as a down payment or be prepared to pay private mortgage insurance (PMI) until they reach 80% LTV (loan-to-value ratio).

We offer fixed and variable interest rates, with terms from 5 to 30 years. We also offer refinancing for conventional loans.