Conventional Home Loans – Fixed and Adjustable Rate Mortgages in Indiana

Conventional mortgage loans remain one of the most popular and flexible financing options for homebuyers and homeowners in Indiana. Offered by private lenders and not backed by government agencies, conventional loans can be structured as either fixed-rate or adjustable-rate mortgages (ARMs), giving you the freedom to choose what works best for your financial situation.

Whether you’re purchasing your first home, upgrading, or refinancing, American Hero Home Loans is here to help you evaluate your options and select a loan structure that supports your long-term goals.

What Is a Conventional Home Loan?

A conventional home loan is any mortgage not insured by the FHA, VA, or USDA. These loans are typically conforming, meaning they follow lending guidelines set by Fannie Mae and Freddie Mac. They are available for:

Primary residences
Second homes or vacation properties
Investment properties

These loans work best for borrowers with solid credit, steady income, and the ability to make a down payment, sometimes as low as 3% for first-time homebuyers.

Key Benefits of Conventional Loans

Low interest rates for borrowers with strong credit scores
Flexible loan terms: 10, 15, 20, or 30 years
No upfront mortgage insurance premium, unlike FHA loans
PMI is cancelable once you reach 20% equity
Available for a variety of property types

Choosing Between Fixed-Rate and Adjustable-Rate Mortgages

Fixed-Rate Mortgage

Stable monthly payments: Interest rate stays constant for the life of the loan
Ideal for long-term homeowners seeking predictability
Popular terms: 15-year and 30-year fixed loans

Adjustable-Rate Mortgage (ARM)

Lower initial rate: Fixed for a set period (3, 5, 7, or 10 years)
Rate adjusts after fixed term: Based on market index
Best for short-term goals: If you plan to move or refinance before the rate adjusts

I’ll help you assess which loan structure is right for you based on how long you plan to stay in the home and your financial goals.

Who Qualifies for a Conventional Loan?

Minimum credit score of 620 (740+ preferred for best rates)
Consistent income and employment history
Down payment as low as 3% (especially for first-time buyers)
Healthy debt-to-income (DTI) ratio

Even if your credit or down payment is less than ideal, I’ll help you explore your eligibility for conventional, FHA, VA, or USDA loans to find the best fit.

Why Work With a Local Indiana Loan Expert?

As a trusted mortgage advisor serving Lake, Porter, LaPorte, Jasper, and Newton counties, I offer:

Custom loan recommendations tailored to your financial goals
Fast pre-approvals and clear next steps
Access to competitive rates and terms
Personal guidance every step of the way

FAQs About Conventional Loans

✅ What’s the minimum down payment for a conventional loan?

3% for qualifying first-time buyers; otherwise, 5% is standard.

✅ Can I cancel PMI on a conventional loan?

Yes. Once your home equity reaches 20%, you can request PMI removal.

✅ Should I choose a fixed-rate or ARM?

It depends. I’ll help you decide based on your budget, plans, and risk tolerance.

✅ Can I buy a second home or investment property with a conventional loan?

Yes. Conventional loans allow for secondary residences and rental properties.

Take the Next Step Toward Homeownership

Conventional mortgage loans are a powerful tool for qualified buyers looking for flexibility, strong terms, and long-term value. Whether you’re refinancing or buying, I’ll help you compare options and choose the best mortgage for your situation, with integrity, clarity, and local support.

👉 Request a personalized quote now

📞 Or call today: 219-695-0369