Prime mortgages are available to borrowers with good credit and meet the standard guidelines set by Fannie Mae and Freddie Mac. Prime lenders offer conventional mortgages for borrowers who meet the minimum standards set for prime mortgages at competitive rates. Although most prime lenders offer similar mortgage programs, not all prime lenders are the same.
What is a Prime Mortgage?
Prime mortgages will meet either Fannie Mae or Freddie Mac guidelines and will be offered at very low interest rates. These mortgages are available to borrowers with the lowest risk and the loans will also be sold to investors in the secondary market.
What is a Prime Mortgage Borrower?
Prime borrowers will be the best and most qualified borrowers when it comes to credit history, income levels and stability, as well as compensating factors such as cash reserves. Prime borrowers will have the most options available to them including government loans such as FHA, VA and USDA.
We often hear about shopping around for a mortgage to get the best rate. Unfortunately, many home buyers are not in the best position to shop due to their credit or financial situation. In some instances, their options may be limited which makes shopping for a rate very difficult. However, prime borrowers are extremely attractive to mortgage lenders which enables them to negotiate the best rates possible.
How to Qualify for a Prime Mortgage
Qualifying for a prime mortgage is going to be very clear and prime lenders will be looking for the following:
- Credit scores of at least 660 or higher
- Down payment of at least 20%
- Steady employment and income for the past two years
- Ability to fully document your income and provide tax returns
- No prior late mortgage payments
- No bankruptcies or foreclosures in your history
If your credit score is lower than 660, you still may qualify for a prime mortgage. However, the higher the credit score, the lower your rate will be.
List of Prime Mortgage Lenders
The majority of the mortgage lenders in the industry offer prime mortgages. However, not all of the are the same and their rates and requirements will vary. The list below is just a small sampling of prime lenders. We can help to determine which lender has the best rate for your personal scenario.
As mentioned above, these are just a few examples of prime mortgage lenders. There is a very good chance that none of these are a good match for your personally.
What is a non-prime mortgage?
Non-prime mortgages are typically those that do not fit the basic criteria set by Fannie Mae, Freddie Mac or the government agencies such as FHA, VA and USDA. Click to read more about non-prime mortgages.
What is a sub-prime mortgage?
Sub-prime mortgages allow for poor credit, inconsistent work history and income, as well as recent bankruptcies or foreclosures. Click to read more about subprime mortgages.
What are the prime mortgage rates?
You can expect prime mortgage rates to be some of the lowest in the industry. The rates are likely to be at or below FHA mortgage rates which are also very competitive.
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