Conventional Financing

Exploring Conventional Financing: A Guide to Your Mortgage Options!

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A conventional loan distinguishes itself as a mortgage not backed or insured by any government agency, such as the FHA or Veteran’s Affairs. Its popularity is on the rise due to competitive rates and adaptable guidelines.

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Who qualifies for Conventional Financing?

• Borrowers with good credit (scores of 720+ are typically ideal candidates).

• Loans are available for credit scores as low as 620, usually with a larger down payment.

• Down payments as low as 5% are available.

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Share your unique circumstances with your First American Mortgage loan officer. Since we handle the entire process in-house, we can customize a solution tailored just for you.

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Conventional loan requirements for 'conforming' loans:

• Applicable for primary residences, second homes, or rental properties.

• The baseline maximum conforming loan limit for one-unit properties in 2024 is $766,550. For larger loans, we offer Jumbo Loans.

• Financial documentation, including W2 forms, the most recent 30-day pay stubs, tax returns for the past two years, and credit reports, must demonstrate the borrower's ability to repay the mortgage obligation.

• Private Mortgage Insurance (PMI) is required for down payments of less than 20% and can be canceled when home equity reaches 78%.

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Contact your loan officer to determine if conventional financing aligns with your needs!