Conventional Loan Eligibility
A conventional loan tends to follow Fannie Mae and Freddie Mac guidelines. Banks and other financial institutions issue a conventional loan – sometimes referred to as ‘regular loans.” A conventional loan is privately backed – unlike the government-issued FHA, VA and USDA loans. Because it’s the banks that put their “necks on the line,” guidelines and eligibility requirements tend to be more stringent than some of the federal loan programs.
There are many advantages for those that qualify for a conventional loan. Call 561-207-8049 to learn more about why a conventional loan might be right for you.
Below are some of the general eligibility requirements of a conventional loan. Because each case is different, make sure to call us to determine if you qualify.
- Credit scores
Guidelines will vary – please contact me for details.
- Income requirements
Your mortgage payment cannot be more than 31% of your monthly gross income and your monthly debts (house, car, student loans, etc.) cannot exceed 45% of your monthly gross income.
- Down payment
Most loans require between a 3% and 20% down payment. Mortgage insurance may be an option for those who cannot put down the full 20%.
You’ll need to provide proof of your:
- income stability
- job history
- residences from the past two years
- income tax filings
(This is just an initial list of paperwork that will need to be provided. Based on your income, assets, liabilities and profits more paperwork may be requested.)
Also, if you are not a U.S. citizen, residency or visa paperwork may be required.
Why such a big process to apply for a conventional loan?
If you think about it – the banks are taking a big risk to loan you enough money to buy a house. They receive thousands of applications each week from hopeful homeowners and investors requesting to borrow funds. To determine who is likely to repay the loans, the banks must set eligibility requirements. Unlike the FHA, VA loans and USDA loans that are backed by the government, there is more risk to the private lenders when they issue a conventional loan. Therefore, stricter guidelines apply.
While a conventional loan may have the strictest eligibility guidelines, they often prove to be the most advantageous loan option for those who qualify.
The conventional loan experts at Leader One will be with you step-by-step to walk you though the process. If there is any way that you may be eligible for a conventional loan, they will make it happen.
To learn more and see if you meet conventional loan eligibility requirements, contact me at 561-207-8049.
Toni and her team are simply the best, this is our 3rd mortgage using their service. Communication is excellent and they make it as painless as a mortgage can be.
Excellent Service and communication from start to finish. The cost and rate we were initially quoted was what we got. Easy to use portals for gathering information. Responses to questions were timely. Completely professional , I would highly recommend using them.
Team Taylor is a great group and a pleasure to work with, will definitely use again! Very organized team and made the paperwork simple and easy. I would recommend to anybody.
Toni and team were the consummate professionals in every sense and kept me connected and on target with all the loan requirements. They didn’t skip a beat, which was extremely important to me since the new home I was buying was contingent upon selling my existing home. They made every step of the way straight forward and stress free with their one-on-one updates and feedback. I would highly recommend them to anyone!
Tony was great through the whole process everything when I smooth as could possibly be expected. She was on top of everything and kept me well informed I would have no hesitation to use her again.
Everyone at Interconnect Mortgage was efficient, timely and very helpful throughout the process. This is my second transaction with them and I quickly remembered why I had returned, Thank you!
As painful as getting a mortgage has become, Toni was on top of all of the required docs, statements, letters etc required to acheive the final goal of closing on our property.
Toni and her team made my home buying experience very easy and simplified. I would definitely recommend her, and of course plan on using her for any future home buying.
I can honestly say that Toni is professional, a straight shooter, and all around just a very professional woman. She has proven her honestly and knowledge time and time again throughout this transaction. In my experience with Toni, her prompt and courteous service, and her keen attention to detail cannot be matched. Not many can boast 29 years of mortgage experience and that experience really showed while dealing with her. Thank you Toni
Toni took the time to make sure we understood everything that was going on and she was very helpful and made the process very easy and stress free!!!!