Conventional Loans

A Trusted Broker/Lender Providing Conventional Mortgage Loans in Brighton, MI


Conventional Mortgage Loans in Brighton Michigan | Concord Mortgage - AdobeStock_117394843Concord Mortgage Inc offers conventional loans with as little as 3% down payment.

Simply put, conventional loans are mortgage loans that are not insured by the government. There is no specific government program that they are a part of such as Federal Housing Administration (FHA) or the Department of Veterans’ Affairs (VA) loan programs. Conventional loans are required to conform to the underwriting requirements and loan limits of Fannie Mae and Freddie Mac.

There are two main categories of conventional mortgages:

  • Conforming: A conforming mortgage will follow the guidelines established by Freddie Mac and Fannie Mae, including loan limits. 
  • Non-conforming: This includes Jumbo Loans, which exceed the loan limits imposed by government-backed agencies, and Niche Products for unusual circumstances and riskier products that are much less common these days.

Why Should You Choose A Conventional Loan?

Conventional loans offer down payment options starting at just 3% for qualified consumers, although many people select higher down payments to avoid private mortgage insurance. Borrowers who put 20% down are not required to have mortgage insurance, which can result in substantial savings over the life of the loan. You can finance your primary home, a second (vacation) home and investments properties with a conventional loan. Lastly, most people choose fixed-rate loans instead of an adjustable-rate mortgage, so they don’t have to worry about rising mortgage rates, which will make it easier for them to budget.

Benefits of Conventional Home Loans

There are numerous benefits to conventional home loans. Conventional mortgage borrowers typically make larger down payments and they tend to have a more secure financial standing with their credit and assets. A larger down payment means lower monthly payments. You have the option to choose your loan type, here are a few of those advantages:

Quicker Home Loan Processing

The processing of a conventional loan is typically more streamlined since it doesn’t depend on government approval and the borrower deals directly with the lender. The result of this is a shorter, less complicated process.

Potentially Decrease or Avoid a Mortgage Insurance Premium

With conventional loans, it’s likely that one could avoid mortgage insurance premiums that you would otherwise have to pay with government-insured loans. This is usually because conventional loans often require higher down payments. However, if you're putting down less than 20%, you will still need mortgage insurance on a conventional loan.

Lower Mortgage Interest Rates

If you have a great credit score, more private lenders are able compete for your business (vs an FHA or VA loan) due to you being "low risk". For this reason, it’s possible to obtain a lower interest rate on your loan. 

At Concord Mortgage, we can help you determine if a conventional home loan is right for you. We pride ourselves on our extensive knowledge of the mortgage industry. Our team understands that figuring out the loan process can be stressful, which is why we are here to help you every step of the way!


Let us make the home buying transaction a pleasant experience for you. Contact the team at Concord Mortgage, Inc. today at (810) 220-8200 to inquire about the perfect loan for your home purchase. We offer Conventional Loans with several options.