Conventional Loans

Conventional Loans


A Conventional mortgage loan is not a loan offered by, guaranteed, or insured by the government. Conventional loans are well suited, particularly for highly qualified borrowers.

Conventional loans, unlike government loans, have interest rates and pricing that are tiered by credit scores and down payments. Generally, every time your credit score rises by 20 points, you will find better terms on conventional loans (680, 700, 720, etc.). Pricing also depends on the amount you put down and those differences generally occur at 3%, 5%, 10%, 15%, and 20% down.

Down payments-

There are many different options available depending on your situation. Down payments as little as 3% for First Time Buyers, and then starting a 5% down from there.

Mortgage Insurance-

When putting less than twenty percent down, conventional loans will require some form of mortgage insurance. A big advantage of conventional financing is that there may be flexibility with mortgage insurance. This will also be priced specifically to your credit score, loan to value ratios, debt to income ratios, and other borrower and loan characteristics.

Advantages of a Conventional loan-

If you have an above average credit score and a low debt to income ratio, a conventional loan may be right for you.

– Mortgage insurance, if required, is based on your credit score as opposed to the fixed amount offered with government programs. If your credit score is higher, your mortgage insurance may be less.

– Unlike with Government loans such as FHA (MIP), VA (Funding Fee) and USDA (Guarantee fee), there is no upfront mortgage insurance with a conventional loan. Fees on government loans are generally financed into the loan, whereas conventional loans do not require this.

– You can choose from a variety of ways to pay your mortgage insurance, such as monthly, single premium, or lender paid.

– The mortgage insurance, if paid monthly on a conventional loan, will automatically be dropped when the loan to value reaches 78% and you can request to have it removed when the loan to value reaches 80%. Government loans contain installments which are paid for the life of the loan.

Contact Christina Ocharzak today for your financing needs at 301-491-4544.

Contact Us

First Home Mortgage Corporation
Christina Ocharzak, Loan Originator
NMLS ID #1299735

1829 Howell Road Suite 1
Hagerstown, MD 21740
(301) 491-4544

Christina Ocharzak - First Home Mortgage - white logo

Christina Ocharzak - First Home Mortgage

Christina Ocharzak is Licensed in:
Maryland (28722), Pennsylvania (50639),  West Virginia (LO-34064)


Refinancing your current mortgage loan could result in the total finance charge to be higher over the life of the loan. This is not a commitment to lend. Terms and conditions of programs, products and services are subject to change. All loans are subject to credit approval and property appraisal. Certain restrictions may apply on all programs. First Home Mortgage Corporation of America, First Home Mortgage Services, and First Home Mortgage Company of Maryland are d/b/a's of First Home Mortgage Corporation. First Home Mortgage Corporation is licensed in Connecticut, Delaware, District of Columbia, Florida, Georgia Residential Mortgage Licensee (Lic. #23135), Indiana, Kentucky, Maine, Maryland, Massachusetts Mortgage Lender and Broker (Lic. #MC71603), Michigan, New Hampshire, Licensed by the New Jersey Department of Banking and Insurance, North Carolina, Pennsylvania, Rhode Island Licensed Lender and Broker, South Carolina, Tennessee, Vermont, Virginia, West Virginia. Equal Housing Lender. First Home Mortgage Corporation NMLS ID #71603 ( Privacy Policy.