Conventional Home Loans
Explore Flexible Mortgage Options Built Around You
At United Home Mortgage, we offer a full suite of conventional loan solutions tailored to homebuyers, investors, and homeowners across Colorado. Whether you're looking for low fixed rates, investor-friendly financing, or niche programs like ITIN or bank statement loans, our team is here to guide you.
Conventional Home Purchase Loans
Conventional loans are the most common type of mortgage in the U.S.—and for good reason. With flexible terms, low rates, and down payments as low as 3%, they're ideal for buyers with solid credit and income who want to avoid extra fees like mortgage insurance or government overlays.
Whether you're a first-time buyer in Colorado Springs, upgrading in Pueblo, or relocating to Denver, our conventional purchase programs give you more control and savings. We offer options with and without PMI, and even help you qualify for appraisal waivers when possible to speed up the process.
- Down payments as low as 3%
- No upfront mortgage insurance premium
- Conventional PMI may be removed once 20% equity is reached
- Flexible property types – single-family, condos, townhomes
- Available with fixed or adjustable rates
We’ll help you get pre-approved fast, match you with the right program, and give you a full closing timeline—all from a Colorado-based mortgage expert who’s got your back.
Cash-Out Refinance Loans
Want to turn your home equity into real financial power? A cash-out refinance lets you replace your existing mortgage with a new one for more than you currently owe—and take the difference in cash. You can use that money to pay off high-interest debt, fund home improvements, or invest in other goals.
Conventional cash-out loans are ideal for homeowners with good credit and solid equity. You can borrow up to 80% of your home’s appraised value, often at a lower rate than personal loans or credit cards. Plus, it may even be tax-deductible if used for qualifying home improvements (consult your tax advisor).
- Access up to 80% of your home’s value in cash
- Use funds for any purpose – no restrictions
- Available on primary residences, second homes, and investment properties
- Lower your overall monthly expenses
- Roll in closing costs to avoid out-of-pocket expenses
Let’s unlock the wealth you’ve already built into your home—with smart, local guidance from our team.
Rate & Term Refinance
Looking to lower your mortgage payment without taking cash out? A rate and term refinance allows you to adjust the interest rate, loan term, or both—helping you save money over the life of your loan or pay it off faster.
This is the ideal loan if your goal is to refinance for a better rate, switch from an ARM to a fixed rate, or shorten your term from 30 years to 15 years. With today’s rates, it’s one of the smartest ways to build equity faster and reduce total interest paid.
- Lower your monthly payment by reducing your interest rate
- Shorten your loan term to build equity faster
- Convert ARM to fixed rate for payment stability
- No cash-back requirements mean fewer restrictions
If it’s been a year or more since you closed your mortgage, it may be time to review your numbers—you could be leaving thousands on the table.
One-Time Close Construction Loans
Building your dream home? Our One-Time Close Construction Loan allows you to finance the land, construction, and permanent mortgage in one seamless loan. That means a single approval, single closing, and fewer headaches.
Instead of closing twice (once for the construction loan, then again for the final mortgage), this program locks in your rate upfront and automatically converts to a long-term loan when construction is complete. It’s ideal for new builds, custom homes, or land + build packages in Colorado’s growing communities.
- Finance the land, construction, and permanent mortgage in one loan
- Lock your interest rate at the beginning
- Eliminates double closings and second rounds of underwriting
- Available for primary residences and second homes
We work directly with your builder and title company to coordinate smooth disbursements, inspections, and final close—all with one point of contact the entire way.
Delayed Financing
Want to make a competitive cash offer on a home—but still get your money back after closing? Delayed financing is the answer. It allows you to purchase a home using cash, then refinance shortly afterward to recoup the funds.
This strategy is especially helpful in hot markets like Colorado, where cash offers stand out to sellers. You get the benefit of a quick close and negotiation power, followed by a conventional refinance loan that puts your funds back into play for future opportunities.
- Buy with cash, then refinance within 6 months
- No waiting periods or occupancy seasoning
- Retain liquidity while still using competitive cash offer
- Ideal for investors or move-up buyers
Our team structures your deal with the right timeline and paperwork from day one—so you get the win at the negotiation table without sacrificing flexibility after closing.
Fixed Rate vs. Adjustable Rate Mortgages (ARMs)
Choosing between a fixed or adjustable rate mortgage comes down to how long you plan to stay in your home, how stable you want your payments, and your appetite for risk.
Fixed Rate Mortgages
Fixed-rate loans offer predictable monthly payments over the life of the loan—typically 15, 20, or 30 years. This is ideal if you plan to live in your home long-term or want consistency in your budget.
Adjustable Rate Mortgages (ARMs)
ARMs offer a lower introductory interest rate for a set period (usually 5, 7, or 10 years), after which the rate adjusts annually. These loans are great for borrowers who plan to move, refinance, or pay off the loan before the adjustment period begins. ARMs can offer significant savings in the early years of the loan.
We’ll help you decide based on your homeownership timeline, financial goals, and risk tolerance.
Conforming vs. Non-Conforming Loans
Conventional mortgages fall into two primary categories: conforming loans and non-conforming loans. Understanding the difference is essential when deciding which loan type suits your financial situation.
Conforming Loans
These loans follow the guidelines set by Fannie Mae and Freddie Mac, the government-sponsored entities that buy and guarantee conventional mortgages. In most counties, the conforming loan limit is $766,550 (2024). These loans generally offer lower interest rates and require full documentation like W2s, pay stubs, tax returns, and good credit scores (typically 620 or higher).
Non-Conforming Loans (Jumbo or Expanded Qual)
Non-conforming loans are used when your loan amount exceeds the conforming limit or if your income, assets, or credit profile doesn’t fit traditional underwriting guidelines. These loans are common in luxury real estate, high-cost markets, or complex financial profiles. They include options like Jumbo loans, asset depletion, or bank statement programs.
Not sure which loan type fits your profile? We’ll analyze your scenario and match you to the right product.
Bank Statement Loans & ITIN Home Loans
Bank Statement Loans (Self-Employed Financing)
If you’re a business owner, freelancer, or independent contractor, traditional documentation may not tell the full story of your income. That’s where bank statement loans come in. We use 12–24 months of business or personal bank statements to calculate your income—no tax returns needed.
ITIN Loans
We proudly help undocumented or non-citizen borrowers secure financing through ITIN (Individual Taxpayer Identification Number) loans. These programs do not require a Social Security number and are ideal for immigrant families who pay taxes but don’t qualify under traditional Fannie Mae/Freddie Mac standards.
Both of these programs help underserved buyers achieve homeownership—with flexible underwriting, manual review, and guidance from our experienced team.
Interest-Only & Balloon Mortgage Options
For borrowers with short-term plans or variable income, we offer loan products designed to give you lower monthly payments up front with more flexibility.
Interest-Only Mortgages
With this option, you only pay interest on the loan for the first 5–10 years. After the interest-only period ends, your payment adjusts to include principal and interest. These are great for borrowers who anticipate future income growth, plan to sell before the full term, or want to invest their money elsewhere in the short term.
Balloon Mortgages
Balloon loans offer lower monthly payments for a fixed period (typically 3–7 years), after which the remaining balance comes due in one lump sum. These are commonly used by investors or short-term homeowners who plan to sell or refinance before the balloon is due.
These products aren’t for everyone, but in the right hands, they’re powerful tools. We’ll help you determine if they’re right for you.
Investment Property Loans & DSCR Financing
We help Colorado investors expand their real estate portfolio with loan programs tailored to rental properties, fix-and-flips, and short-term holds.
Conventional Investment Loans
These loans follow standard guidelines but allow for 1–4 unit rental properties. Borrowers need good credit, documented rental income, and typically a 15–25% down payment. Great for long-term investors looking to leverage competitive rates.
DSCR (Debt-Service Coverage Ratio) Loans
No tax returns. No W-2s. No job history required. We qualify based on the property’s income, not yours. If your monthly rent covers your mortgage payment (DSCR ≥ 1.0), you could be approved—even if you own 10+ properties.
Whether you’re buying your first rental or your 15th, we have the tools to help you scale smart and close fast.
Frequently Asked Questions About Conventional Loans
1. What is a conventional loan?
A conventional loan is a mortgage not backed by a government agency. It follows guidelines set by Fannie Mae and Freddie Mac and is available for primary homes, second homes, and investment properties.
2. How much do I need for a down payment?
Conventional loans allow down payments as low as 3% for qualified first-time buyers. Most borrowers put 5%–20% down, depending on credit score and loan type.
3. What credit score do I need to qualify?
Most lenders require a minimum credit score of 620 for a conventional loan, but higher scores often result in better interest rates and lower private mortgage insurance (PMI) costs.
4. What’s the difference between conforming and non-conforming loans?
Conforming loans meet Fannie Mae/Freddie Mac guidelines and stay within set loan limits. Non-conforming loans (including jumbo loans) exceed these limits or have expanded approval criteria.
5. Can I remove mortgage insurance on a conventional loan?
Yes. PMI on conventional loans can be removed once you reach 20% equity. Unlike FHA loans, it's not required for the life of the loan.
6. What are bank statement loans?
Bank statement loans allow self-employed borrowers to qualify using 12–24 months of personal or business bank deposits instead of tax returns.
7. Are conventional loans available for investment properties?
Yes. You can use a conventional loan to buy or refinance rental properties. Down payments typically start at 15%–25% depending on property type and occupancy.
8. What is a rate and term refinance?
It’s a refinance used to lower your rate or change the term of your loan without taking cash out. It's one of the most common ways to save money on your mortgage.
9. What is delayed financing?
Delayed financing lets you buy a home with cash, then quickly refinance to recover your funds—ideal for competitive offer situations.
10. Can I build a home with a conventional loan?
Yes! Our one-time close construction loan allows you to finance land, construction, and your final mortgage all in one convenient loan—with one approval and one closing.