Is A Conventional Home Loan Right for You?
When it comes to shopping for a mortgage, there are many loan options to choose from depending on your income, debt, credit history and a few other factors. However, time and time again the most popular home loan is a Conventional Home Loan. Not only is it the most popular across the nation but also at Hall Financial!
So, what is a Conventional Home Loan?
This loan specifically follows the guidelines set by FHFA (Federal Housing Finance Agency through the GSE’s (Government Sponsor Enterprises) also know as, Fannie Mae and Freddie Mac. Fannie Mae and Freddie Mac follow guidelines regarding your down payment and your yearly income. However, it is not formally backed by a government agency such as the FHA or VA.
There are also two types of conventional mortgages that typically have to do with how much you can borrow. The two types are conforming and nonconforming loans. Conforming loans allow individuals to take out up to $647,200. Nonconforming loans also known as jumbo loans, are for those who need an amount that’s higher than the limit.
What are the requirements of a Conventional Loan?
Requirements will differ from lender to lender, however at Hall Financial for a client to be considered for a conventional loan they must meet the criteria listed below…
- Good credit history! Hall Financial specifically looks for individuals with a credit score of at least 620 or higher. The higher the credit score the better!
- A healthy savings account. You will need a nice down payment of 3-20 percent.
- A debt to income ratio of 50% or less your gross monthly income. This does include your projected house payment!
- Well established employment! We like to see that you have been with an employer for 2+ years.
Why choose a Conventional Loan?
Conventional loans provide many attractive features that make it one of the most popular loan options time and time again. Below you will find these attractive features…
- 5-STAR low interest rates.
- Fast loan processing! Hall Financial has the ability to close your loan in 8 days! We are known for our speedy fast turn times.
- Diverse down payment options.
- Low private mortgage insurance for individuals who do not have the ability to put down 20% as their down payment.
All in all, A conventional loan has many appealing features however other types of mortgages have their advantages as well. The team at Hall Financial is here to help you every step of the way and will ensure we set you up for success.
For more information, chat with us at callhallfirst.com or give us a call at 866-Call-Hall.