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Conventional Loans

Maritime Mortgage Corp has been providing access to conventional loan financing since 1989.

         Conventional Mortgage Loans are sold to Fannie Mae and Freddie Mac, which are Government Sponsored Enterprises (GSE's). Since 2008, both Fannie Mae and Freddie Mac have been placed into conservatorship by the U.S. Government. Because the U.S. Government legally controls and guarantees these loans, their interest rates tend to be among the lowest market rates available in the U.S. Traditionally, conventional loans require a minimum 5% down payment. Some programs now have down payment options as low as 3% down!

         Conventional Fixed Rate Mortgages are available in 10–40 year loan terms. They have traditionally been the most popular choice for people who intend to own their property for 7 years or more. Due to the fixed interest rate, the monthly mortgage payment remains consistent over the life of the loan.

         Conventional Adjustable Rate Mortgages (ARMs) are based on a 30-year loan term with the interest rate adjusting to market rates during the life of the loan. Adjustment periods range from 1-7 years. These loans are attractive to borrowers who don't plan to keep their property over the long term and will benefit from a lower initial interest rate. Initial rates on ARMs are typically lower than comparable fixed rates.

         Conforming vs. High Balance loan limits The conforming base loan limit for all single-family residences nationwide is $417,000. Multi-unit buildings up to 4 units are available at higher loan limits.

         In 2008, a separate High Balance loan limit category was created to allow increased loan limits for all high cost areas. In Massachusetts the maximum limit under this program for single-family residences is $625,500. However the actual limit varies for each county within the state. This program is temporary and requires annual Congressional renewal.