Conventional Loans

When it comes to home financing, conventional loans have some of the most flexible terms and best rates available in the mortgage market. These privately funded, privately insured loans come in all shapes and sizes. The Nickel City Funding professionals can deliver a personalized conventional loan quote for you, fast. We will evaluate your finances and goals as a homeowner to determine what type of financing makes sense for you. We work with clients purchasing homes throughout New York. Contact us with your questions and schedule a quote today.

A conventional loan is a type of home financing that is not insured through the U.S. Federal Government. Instead, conventional loans are privately funded and insured and are not subject to regulation through the federal government. Nonconventional loans, conversely, are insured by the federal government, but funded through private insurers. Common examples of nonconventional loans include FHA loans from the Federal Housing Administration and VA loans through the U.S. Department of Veterans Affairs. At Nickel City Funding, we offer both types of loans.

Beneath the umbrella of conventional loans, there is a further distinction to be made. Conventional loans are either conforming or nonconforming. Conforming loans are those that are repurchased by the mortgage giants Fannie Mae and Freddie Mac. These are government-sponsored entities (GSEs), not actual government departments. Fannie Mae and Freddie Mac repurchase home loans in bulk, but only purchase loans up to a certain limit depending on the cost of a home in each county. In Niagara and Erie counties, that limit is $424,100.

What this means for you, essentially, is that homes financed for less than $424,100 are conforming while homes over that limit are nonconfoming, aka "jumbo," loans. Conforming loans typically have fixed rates and lower interest than jumbo loans. Jumbo loans typically require a higher down payment of at least 30% of the loan value, while conforming loans may have down payments of 20% or lower in some cases.

Our mortgage pros have more than 20 years of experience with conventional loans. We can quickly give you a quote for conforming or nonconforming conventional loan, depending on the size of loan you need to purchase the home you want. Keep in mind that conventional loans have more stringent qualifying requirements than nonconventional loans, because they are not backed through the government. You should have a good to great credit score (the higher the loan value, the better the credit score is required). You should also not have a high debt-to-income (DTI) ratio and be prepared to show proof of income and ability to pay for your mortgage premiums and for private mortgage insurance (PMI).

While applying for a conventional loan may seem intimidating for some, we help our clients at every step of the process. If you want a home loan with a great rate with terms that make sense for your unique needs, contact us to get a quote for a conventional loan. We work with clients throughout New York. Let the Nickel City Funding team join you on your homeownership journey today.

If you live in Niagara or Erie counties in New York, loan limits for conventional mortgages are:

• $726,200 for a single-family home
• $929,850 for a two-family home
• $1,123,900 for a triple-family home
• $1,396,800 for a four-family home