Maritime Mortgage Corp has been providing access to Conventional loan financing since 1989.
A Conventional Mortgage is a loan sold to Fannie Mae and Freddie Mac. Traditionally, conventional loans require a minimum 5% down payment. However, there are now programs available with as little as 3% required for a downpayment!
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 Principal & Interest 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 1-10 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
While both conforming and High Balance loans are considered Conventional, they differ based on the minimum and maximum loan amount and underwriting guidelines.
Conforming loan limits for single-family residences nationwide is $484,350-, though some counties have lower loan limits. Multi family homes, up to 4 units, have higher loan limits.
High Balance loans were created to allow increased loan limits for all high cost areas. In Massachusetts the maximum limit under this program for single-family residences is $726,525. However the actual limit varies for each county within the state.