Peoples Bank Mortgage offers a wide variety of conventional loans to its clients. What are conventional mortgages? These are loans that are not guaranteed by government agencies, like FHA, VA, and USDA loans.
Most of the loans guaranteed by the government are what are commonly referred to as “conforming” loans because they adhere to the guidelines which are set down by the Federal National Housing Administration or the Federal Home Loan Mortgage Corporation (otherwise known as “Fannie Mae” and “Freddie Mac”). Fannie Mae and Freddie Mac make these home loan guidelines in order to establish criteria for the mortgages that it sells to investors.
In contrast to conforming loans with strict criteria, some of the benefits of borrowing with a conventional (or non-conforming) mortgage loan includes:
- Highly competitive rates and flexible terms
- No private mortgage insurance on loans with equity over 20%
- Loans for urban, rural, condos, PUDs and most other types of housing
- Varying loan limits depending on your area
HARP: Conventional Streamline Loans
If your home was purchased before June 01, 2009 and the mortgage note is held at Fannie Mae or Freddie Mac you most likely are eligible for a HARP refinance and need to speak with a mortgage lender. Fannie Mae’s program, DU Refi Plus, is the most common however Freddie Mac’s program, Refi Relief or Open Access, is just as advantageous if one qualifies.
These government mortgage refinance programs allow homeowners who are up to 150% loan to value on their home to refinance. However you must be current on your payments for the last 12 months. These loans come with reduced paperwork, appraisal waiver on select homes, and can save borrowers by reducing their interest rate. Peoples Bank offers both programs and can quickly let you know if you qualify for these money saving mortgages.