Conventional Financing
 

Conventional Financing

Let’s start a conversation about how you plan to finance your real estate purchase. At FIRST AMERICAN MORTGAGE, we’ll provide you all the information you need to decide if a conventional mortgage is best for you, or if there are more beneficial options suited to your situation.

A conventional loan is a mortgage that is not guaranteed or insured by any government agency like the FHA or Veteran’s Affairs. Conventional loans are increasingly popular because of relatively low rates and flexible guidelines.

Who qualifies for Conventional Financing?

Borrowers with good credit — scores of 720+ — are the best candidates for conventional loans.  Depending on your credit history, the minimum down payment could be as low as 3%.  Loans are available to credit scores from 620+, generally with a larger down payment.  Conventional loans come in 10, 15, 20, 25, and 30-year terms. A shorter term generally means a higher monthly payment. Please share your specific circumstances with your FIRST AMERICAN MORTGAGE loan officer. Because we process, underwrite, and prepare all our loans for in house we can tailor a solution just for you.

Conventional loan requirements for “conforming” loans

  • You can use a conventional loan to buy a primary residence, second home, or rental property.
  • The baseline maximum conforming loan limit for one-unit properties is $453,100.
  • The maximum allowable debt-to-income ratio set by Fannie Mae is 28% housing, 36% overall which can be exceeded.
  • Financial documents must show the borrower is able to repay the mortgage obligation, including (but are not limited to): w-2 forms for the past two years, recent pay stubs showing year-to-date earnings, tax returns for past two years, and credit reports.
  • Conventional loans are available in fixed rates, adjustable rates (ARMs), and offer many loan terms usually from 10 to 30 years.
  • Down payments as low as 3%.
  • No monthly mortgage insurance with a down payment of at least 20%.
  • Mortgage insurance may be canceled when home equity reaches 80% LTV.

Contact your loan officer to see if conventional financing is right for you!

 

First American Mortgage, Inc

NMLS#:208913

Address:

1501 S. Ranchwood Blvd, Yukon, Ok. 73099

Phone:

405-354-0426