You raised your right hand and swore an oath to go wherever your country needed you, whenever it nee…Read More
A conventional loan relies on your credit score, income, and assets in order to support purchasing a house, rather than government-backing. Whether this house is going to be a primary residence, a second home, or a vacation property, a conventional loan might be the best way to fund the property. Of course, you’ll need to make sure you meet all the requirements before you start making offers.
Partnering with The Delgado Team at Guaranteed Rate allows you to do exactly that. We’ll see if you’re qualified and help you leverage your full potential, then let you get started with your property search. Selecting a conventional loan over a federally backed loan allows you to enjoy the following:
- Higher loan limits
- Adjustable-rate and fixed-rate loan terms
- No private mortgage insurance with 80% loan-to-value ratio
- Can be used for second homes or investment properties
- Lower PMI rates than FHA loans
A few things you need to know about conventional home loans
With conventional home loans, there is a lot more room for negotiation and flexibility in eligibility requirements based on what you can afford and what home you are attempting to purchase. The better your credit score and the higher your down payment you are able to make, the more leverage you have. Here are a few things to understand about conventional home loans:
- The typical minimum credit score to qualify is 620.
- Typical minimum downpayment is 20% but may be as low as 3% for first-time homebuyers for a primary residence.
- May be used to finance any home — subject to lender’s terms.
- Flexible interest rates and payback options, including adjustable-rate and 15-, 20-, or 30-year mortgage options.
- Lower monthly payment, closing costs, and fees than other home loan options.
You may be a perfect candidate for a conventional loan if you have a strong credit score and a significant down payment. The only way to know for sure is to give us a call. Contact us today to schedule your appointment with our team. We’ll help you afford your dream home.