Exploring Conventional Financing: A Guide to Your Mortgage Options!
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.
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.
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.
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%.
Contact your loan officer to determine if conventional financing aligns with your needs!