Conventional Loans, also known as Conforming Loans, offer an excellent financing option for home buyers. These loans are typically granted by traditional mortgage lenders, such as banks or third-party mortgage lenders.
These loans are supervised and regulated by Federal Housing Finance Agency (FHFA) which also specifies the conforming loan limits. These are usually guaranteed by Fannie Mae and Freddie Mac.
Conventional mortgages can be classified as fixed mortgages and adjustable-rate mortgages. These can include customized mortgage plans such as a 30-year fixed mortgage, a 15-year fixed mortgage, hybrid ARMs, etc.
To qualify for a conventional home loan in the U.S., you need to meet certain income and credit requirements.
The following are the essential requirements you should be prepared to meet when you apply for a conventional loan:
- Applicant should have a good credit score i.e., 620 or above
- The applicant needs to have a favorable debt-to-income ratio(such as below 45%)
- Applicants must provide sufficient proof of income
- Proof of cash reserves and assets will be required
- A home appraisal will be required to verify the property’s value and condition
- Details of the applicant’s credit history and debt-to-income ratio will be needed
Additionally, a few other details might be needed by lenders. At PierPoint Mortgage, we have a specialized team of mortgage experts to guide you with your every step during the home loan process. So, don’t hesitate to reach out to us for any queries.
Simply fill out your loan application and get started today!