Conventional Loans in Kansas City

What exactly makes a loan “conventional?” While mortgage terminology can often seem pretty confusing, the answer here is actually fairly simple. In broad terms, there are two kinds of mortgages: those that are guaranteed or insured by a government agency or program, and those that aren’t. The former category includes Federal Housing Administration (FHA) loans and loans backed by the Department of Veterans Affairs (VA), to name a few. Loans that are not guaranteed or insured by the government are known as conventional loans.

Under the broad umbrella of “conventional loans,” about half are what we call “conforming” mortgages. These are probably the most common of all home loans, and conform to guidelines established by Fannie Mae (the Federal National Mortgage Association) and Freddie Mac (the Federal Home Loan Mortgage Corporation). “Non-conforming” loans include higher risk loans for niche products or sub-prime borrowers, or “jumbo loans” which can exceed the loan limits imposed by Fannie Mae and Freddie Mac.

What Do Conventional Loans Include

Conventional loans come in all shapes and sizes, and include just about any mortgage that is not guaranteed or insured by a government agency or program. This includes:

  • Conforming loans
  • Non-conforming loans
  • Jumbo loans for more expensive properties
  • Riskier sub-prime loans
  • Portfolio loans
  • And others

Conventional loans are often more flexible in their funding options than loans that are backed by government agencies, and can include either fixed-rate or adjustable-rate mortgages. Your loan officer at First Fidelis can help you find the loan that’s the right fit for you.

First Fidelis for Conventional Loans in Kansas City

Because they are not guaranteed by government entities such as the FHA, conventional loans in Kansas City can sometimes require a bit more effort than loans that are backed by the government. Securing a conventional loan may have additional credit or financial requirements in order for you to qualify. The good news is that conventional loans are extremely versatile and can be used by just about any interested home buyer for just about any type of property, with more flexible terms and fewer restrictions than those loans backed by government agencies or programs. Some applicants even enjoy lower mortgage insurance premiums or lower interest rates with conventional loans in Kansas City.

Navigating the process of securing any kind of mortgage is something that you will want to do with an experienced mortgage professional by your side. That’s why First Fidelis is here to help you make sense of all your loan options and find the mortgage solution that is perfect for you, your family, and your budget. So, if you’re looking for the best Kansas City home loans and mortgage options, contact First Fidelis today!

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