Conventional
Loans
Get Further Information About Conventional Loans Below
What are Conventional Loans?
Conventional Loans are mortgage loans that are not insured by the government (like FHA, VA, USDA Loans), but they typically meet the lending guidelines that have been set by Fannie Mae or Freddie Mac. Conventional loans typically require a borrower to have good-to-excellent credit, reasonable amounts of monthly debt obligations, a down payment of 5-20% and reliable verifiable monthly income. Well qualified borrowers can put as little as 3% down. Loans with less than 20% down require PMI.
BENEFITS
Typically, conventional loans have better rates, terms, and/or lower fees than other types of loans. Conventional loans are ideal for borrowers with good credit and at least a 5% down payment. Unlike VA and FHA there is no upfront mortgage insurance.
Who is eligible for a Conventional Loan?
Anyone can get a conventional loan with residency status. You must prove two years minimum employment status and have a steady or increasing income for at least 2 years. The down payment must be seasoned a minimum of 60 days and verified. You must have good to excellent credit.
What types of property are eligible?
Most conventional loan programs allow you to purchase single-family homes, warrantable condos, planned unit developments, and 1-4 family residences. A conventional loan can be used to finance a primary residence, second home and investment property. Manufactured homes on a permanent foundation are allowed.
Learn More About Conventional Loans or contact Ron.
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