Conventional loans come in a variety of options and with excellent advantages for qualified borrowers.
However, conventional loans are commonly interchangeable with ‘conforming loans’, since they are required to conform to Fannie Mae and Freddie Mac’s underwriting requirements and loan limits.
The primary benefits of a Conventional Purchase are...
- Lower overall cost than many government products that require mortgage insurance.
- Conventional loans usually require less paperwork and can be obtained more quickly than government insured ones.
- No PMI with down payments of 20% or more.
How do I qualify?
Some other eligibility requirements include...
- Credit Score. The minimum credit score requirement is typically between 620-640 depending on the the wholesaler that is used.
- Income must be verified by reviewing your recent pay stubs, W2s and tax returns. Debt-to-income ratio cannot exceed 43%.
- Bank statements and investments will need to be verified to ensure the you has sufficient assets to close. These funds must be able to cover a down payment with any associated closing costs.
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Is a Conventional Purchase right for you?
Speaking with one of our experience loan help officers can help you further decide the best option, weighting the benefits and drawbacks of loan types so that you can make the best decision for your situation.