Conventional loan options are a great choice for homeowners looking to purchase any property type from a primary residence, second home, or an investment property. This is also a great refinance loan option to lower your existing rate or pull cash out for home improvements, debt consolidation, or that long overdue vacation. This loan is great for new home buyers with at least 3% down, good credit, and low debt ratios. Conventional loans do not have PMI if you have 20% equity in your home or are putting down 20% on a new home purchase. If you don’t have 20% to put down, no problem! The PMI drops off after you have paid down your loan, unlike FHA and USDA loans where PMI is in most cases for the life of the loan. Conventional loans do not have upfront PMI, they allow for as little as 3% down and while the rates are higher than those of government loans, the offset in what you pay for PMI both upfront and monthly can more than makeup for the difference in the rate!

1. Minimum 620 Credit Scores
2. Ability to pay any closing costs not being paid by the seller from an acceptable source.
3. Ability to pay a down payment of 3% – 20% depending on eligibility and occupancy status.
4. Ability to meet general debt ratios of 30/45 – typically most loans are able to be approved with housing ratios of 30% and total debt ratios of 45%. We do see higher (or lower) ratios depending on specific situations.
5. Reserves are also needed depending on the occupancy status (primary or second home/investment property)