Moving Family Forward

Conventional Loan in Birmingham, Huntsville & Mobile

For more than two decades, Weber Mortgage has built a foundation of respect and trust with our clients. Our experts offer superior rates and services for VA, FHA, conventional, non-qualifying, and other types of home loans. From the first contact to the final closing, your biggest investment is our top priority. We make your home loan process clear and straightforward.

Among the loan services we offer, the Conventional Loan is one of our most popular options for homebuyers in BirminghamBessemerHuntsvilleMobile, and other cities we serve throughout Alabama.

What is a Conventional Loan?

A conventional loan is a type of mortgage loan that is not insured or guaranteed by the government. Instead, the loan is backed by private lenders, and its insurance is usually paid by the borrower.

Different Types of Conventional Loans

What is a Conventional Loan

There are two types of conventional loans: conforming and non-conforming. Here’s the difference:

  • Conforming Conventional Loan: In order to be considered a conforming conventional loan, the loan must meet the guidelines set by Fannie Mae and Freddie Mac. No, those aren’t your friendly neighborhood grandparents. Fannie Mae (short for the Federal National Mortgage Association) and Freddie Mac (short for the Federal Home Loan Mortgage Corporation) are government-sponsored enterprises that purchase mortgages from lenders.
  • Nonconforming Conventional Loan: Simply put, a non-conforming conventional loan (also referred to as a jumbo loan) is a conventional loan not purchased by Fannie Mae or Freddie Mac because it doesn’t meet the loan amount requirements. Instead, non-conforming loans are funded by lenders or private institutions.
Requirements to Avail a Conventional Loan

How to Qualify for a Conventional Loan

Your first step in qualifying for a conventional loan is to sit down with a lender. When you meet with a lender, they’ll ask for documentation like recent pay stubs, tax returns, bank statements, and other financial information. They want to make sure you have a steady income and can make your monthly mortgage payments on time.

You will also need a down payment to qualify for a conventional loan. Though you can put as little as 3% down when you get a conventional loan, we recommend putting at least 10% down. But 20% is even better because then you can avoid paying PMI!

If you want to start your home search on a strong financial footing, talk to your lender about becoming a certified homebuyer. Doing this will require a few extra steps upfront, but it can give you an edge over other buyers in a hot market and get you to the closing table faster.

Benefits of a Conventional Loan from Weber Mortgage

There’s a reason why conventional loans are so popular. This type of loan has several features that make it a great choice for most people:

  • Low-interest rates
  • Fast loan processing
  • Diverse down payment options, starting as low as 3% of the home’s sale price
  • Various term lengths on a fixed-rate mortgage, ranging from 10 to 30 years
  • Reduced private mortgage insurance (PMI)

Choose Weber Mortgage for Your Conventional Home Loan in Birmingham, Calera, & Echola

It’s human nature to build a family and every family dreams to have its very own home. Therefore, it’s only natural that professionals with a family-oriented perspective will realize the true passion for every person seeking a home loan. Weber Mortgage is a family-owned company and we know how important it is for you to find the most suitable loan & home that not only meets your desire but also takes care of your financial status. Contact us today or call us at 205-751-8583 to take the first step in making your dream-to-own a home come true. Our services are available in Birmingham, Demopolis, Calera, Echola, Adamsville, and other cities we serve throughout Alabama.