• Home Purchase: Primary residences, second homes, and investment properties.
  • Refinancing: Can be used to refinance an existing mortgage.
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Key Features

  • Down Payment: As low as 5%; or 3% for some first-time homebuyers
  • Loan Term: 10, 15, 20, 25 & 30 years.
  • Interest Rates: Can be fixed or variable.
  • Credit Score: Usually requires a credit score of 620 or higher.

Benefits

  • Flexibility: Various term lengths and interest rate options.
  • No Mortgage Insurance: If down payment is 20% or more.
  • Lower Overall Costs: Potentially lower costs over the life of the loan if you have a strong credit profile.
  • Home Equity: You can build equity more quickly with a conventional loan.

Considerations

  • Credit Requirements: Higher credit score generally needed compared to government-backed loans.
  • Down Payment: A significant down payment could be required, especially for those with lower credit scores.
  • Private Mortgage Insurance (PMI): Required if down payment is less than 20%.
  • Loan Limits: Some conventional loans have maximum borrowing limits, though they are generally higher than government-backed loans.

Eligibility

  • Residency: U.S. citizens, Permanent Residents, and some non-permanent residents eligible.
  • Income: Proof of stable income typically required.
  • Debt-to-Income Ratio: Usually should be under 43%.

Application Process

  • Documentation: Proof of income, employment, and credit history usually required.
  • Appraisal: An appraisal will generally be needed to determine the home’s value.
  • Closing: Final approval, often 30-45 days from application to closing.

Always consult with your loan officer to make sure you’re making the best decision for your specific circumstances.