Explore Conventional Home Loans in VA & NC
Conventional mortgage loans are a type of home loan that isn’t backed by the federal government. Most conventional loans are conforming, which means they don’t exceed the loan limits set by the Federal Housing Finance Agency (FHFA).
Choose between fixed-rate and adjustable rate conventional mortgages:
- Fixed-rate conventional loans: Offers the same interest rate over the life of the loan and stable monthly payments. Great for homebuyers who plan to stay in their home long-term.
- Conventional ARM loans: Adjustable-rate mortgages may have a lower introductory interest rate than a conventional loan. Once that introductory period is over, your interest rate may adjust up or down periodically depending on the benchmark rate and other terms of your loan.
When To Apply For A Conventional Home Loan
Conventional mortgages are a great option for qualified buyers who can put 20% down to avoid paying for Private Mortgage Insurance (PMI). When mortgage rates are low, buyers may prefer a fixed-rate loan to “lock in” the low rate. On the other hand, an ARM loan will lower your interest rate in the future if the benchmark rate falls, saving you the trouble of refinancing to get a lower rate. Ultimately, the choice is between wanting a stable mortgage payment that is easier to budget for vs. being willing to take a risk that rates will rise in exchange for a lower introductory rate and potentially low rate after the intro period as well.
Alternatives To A Conventional Loan
If you have trouble qualifying for a conventional loan or want a lower down payment option, consider a federally-insured mortgage program such as the VA, FHA, and USDA loan programs. If you need to borrow more than the conforming loan limit for your county, we offer jumbo loans.
Why choose American National Bank as your mortgage lender?
With local, knowledgeable mortgage bankers, you benefit from quick turnaround times by people who know the market. American National’s tradition of community banking dates back over a century to our founding in 1909. We believe being local is more than just having an office in the community. It's about looking out for our customers with better banking options and quick, local decisions. Whatever type of home financing you’re looking for, we are here to help you achieve your goals. We know that it’s not just about getting a mortgage; it’s about building the life you want. With multiple banking locations in Virginia and North Carolina, we are proud to be your community's hometown mortgage lender.