Conventional Loans - The Basics

First time home buyers can put down as little as 3% with conventional financing and as little as 5% every purchase thereafter! While you can avoid mortgage insurance in both purchase and refinance transations by representing 20% equity in your home, if needed, conventional PMI is often cheaper than FHA's MIP premium.

Conventional loans require a slightly better ratio in regards to DTI. However due to their lower costs these ratios frequently even themselves out.

Conventional loans carry the strictest guidelines when it comes to credit history. They require FICOs in the 600-700s along with much longer time-frames with bankruptcies and foreclosures - four to seven years.

Because these loans are more stringent with income and credit requirements, they do allow slightly more flexible standards when it comes to the condition of the home regarding repainting or installing hand rails.

The standard loan limit for conventional loans is $453,100, however they can go as high as $721,050 in high cost counties.If you want more money than that don't get discouraged yet- "jumbo" loans go up to and beyond $2,000,000. However, qualification requirements get even more strenuous as there is more at stake.  See where your county loan limits line up below!

For free information call now at 877-606-9282 or set an appointment on our home screen for one of our mortgage experts to answer any additional questions you may have!