Conventional Mortgages
Do you meet good credit, income, and down payment
guidelines?
Conventional mortgages are quick and easy to
obtain.
 What
is a Conventional Mortgage
A conventional mortgage is a home loan in which the borrower
meets certain specific guidelines, thereby alleviating some
of the risk associated with the loan. This reduced risk
results in a higher willingness of lenders to lend money for
the mortgage, which lowers the overall interest rate for
borrowers.
That means lower monthly mortgage payments for you.
Conventional mortgages are also known as conforming
mortgages, because they conform to the standards of the
government owned corporations Fannie Mae and Freddie Mac.
Traditionally, conventional home loans have a limit of
$417,000. However, in certain high cost areas, the loan
limits are as high as $729,000. A quick call to
1-866-854-4242 can help you determine the loan limit for
conventional loans in your area. Loans that are beyond the
lending limit are known as jumbo loans - and have higher
interest rates than conventional loans.
Conventional Mortgage Guidelines - What do I need to
Qualify?
In order to qualify for a conventional mortgage, you need to
meet a few general guidelines. The first is you must have
good credit. This is generally defined as having a credit
score of at least 620, although 680 and above is preferred.
In addition to a good score, you need to have a good credit
history, indicating that you regularly pay debts on time.
To qualify for a conventional mortgages, you may not have
had a bankruptcy within the last four years. This means you
must wait at least four years from the date of discharge of
a bankruptcy to apply for a conforming mortgage. Timely
payments, no bankruptcies, and a higher credit score combine
to provide a good credit history, which results in a lower
interest rate for the borrower.
You will also need to have a minimum down payment of five
percent available, but most conventional loans require that
you pay either twenty percent of the home’s value as a down
payment, or have a minimum of twenty percent equity.
Along with having equity and a down payment, you usually
need a minimum of three months reserves when obtaining a
conventional mortgage. Thus, if a borrower’s monthly payment
would be $1,100 on a $200,000 home, you would need at least
$3,300 in reserves. These reserves can be in any form,
including, but not limited to, 401Ks, savings accounts, and
checking accounts.
The last and final guideline you must meet to qualify for a
conventional mortgage involves mortgage insurance. If you
are borrowing 80% or more of your home’s value, known as
having above 80% Loan-To-Value (LTV), conventional mortgages
require that you obtain mortgage insurance.
Unsure if you qualify? No problem. Fill out a few questions
and we can help you determine your eligibility and the best
possible loan option to consider. It's fast, easy and free.
How Do I Apply for a Conventional Mortgage?
While conventional mortgages appear more difficult to
qualify for, they are actually extremely easy to obtain. A
borrower that meets the guidelines for a conventional
mortgage can complete the process quickly and easily.
Here at CREFCO, we are determined to make the process as
easy and painless as possible. When you
fill out our quick,
secure, online application, one of our representatives will
contact you and answer any additional questions you may have.
They will work closely with you to make sure you obtain the
best rates for your situation, and keep you informed about
every step in the process.
Apply now! There's no obligation and the process is simple,
secure, and hassle-free.
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What Clients Say
"I would definitely do business with you again!"
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Conventional
Mortgage or FHA?
Are you wondering whether you're
better off with a conventional mortgage or an
FHA mortgage? Our mortgage experts can give you
a conventional vs. FHA analysis to help you
decide. Just call 866-854-4242 |
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