Conventional Home Loan Requirements

Conventional Home Loan Requirements

Conventional home loans are offered if you have 5% to 20% of the appraised value of the house you want to purchase.

Lenders such as the Chris Reese Mortgage Team at United Lending Partners offer conventional loans. However, whether or not you qualify for the loan depends on several factors.

Down payment requirements dictate that you must have a good credit score (640 and above) to qualify for a conventional loan.

The credit score will also determine the interest rate at which you will repay the loan; poor credit scores dictate higher interest rates.

Traditional mortgage loans can only offer 80% of what you need to buy the house, while the high ratio option will offer you up to 95%.

• Down Payments: conventional loans require larger down payments than government loans do. FHA and VA loans insure the lender’s risk, so less down payment is required for these programs. If the borrower does not have 20 percent of the purchase price to put down on the home, they must obtain private mortgage insurance (PMI).

• Borrowers buying a home where the loan amount is greater than $417,000 will not qualify for a conforming, conventional loan. Depending on the loan size and county, the borrowers would need to obtain a High Balance Conventional loan or a Jumbo loan.

•  Borrowers must typically have a credit score above a 640 in order to qualify for a conventional loan. You will want to have a Loan Officer on the Chris Rees Mortgage Team check your credit score before moving forward to determine if there are any items that must be updated prior to a home purchase.

• Borrowers must typically have a credit score above a 640 in order to qualify for a conventional loan. You will want to have a Loan Officer on the Chris Rees Mortgage Team check your credit score before moving forward to determine if there are any items that must be updated prior to a home purchase.

 

• Borrowers must be able to prove a solid and steady income, by showing tax returns and w-2s. You can be self-employed but need to show that your business is stable and making regular profit.

 

Qualifying for a home loan can seem daunting, but the process can be quite easy if all of your ducks are in a row before applying.

Contact the Chris Reese Mortgage Team today to discuss your home loan options in Roseville, CA and the surrounding areas at 916-502-1656.

Conventional Home Loan Requirements