{"id":1919,"date":"2018-06-23T05:25:19","date_gmt":"2018-06-23T05:25:19","guid":{"rendered":"https:\/\/dreamhomefinancing.com\/\/?page_id=1919"},"modified":"2024-01-07T14:03:32","modified_gmt":"2024-01-07T19:03:32","slug":"ConventionalLoans","status":"publish","type":"page","link":"https:\/\/dreamhomefinancing.com\/ConventionalLoans.aspx","title":{"rendered":"Conventional Home Loans &#8211; Mortgage Rates"},"content":{"rendered":"<section class=\"wpb-content-wrapper\"><p>[vc_row][vc_column][vc_column_text]<strong>What is a Conventional Mortgage Loan?<\/strong><\/p>\n<p>A conventional loan is one that is not insured (or guaranteed) by the government. Loans that typically are government backed are\u00a0<a href=\"https:\/\/dreamhomefinancing.com\/\/FHAMortgageLoans\/\">FHA\u00a0Home Loans<\/a>,\u00a0<a href=\"https:\/\/dreamhomefinancing.com\/\/VAHomeLoans\/\">VA\u00a0Home loans<\/a>, and\u00a0<a href=\"https:\/\/dreamhomefinancing.com\/\/USDAMortgageLoans\/\">USDA\u00a0Loans<\/a>\u00a0for rural areas. Conventional loans are usually a Fannie Mae or Freddie Mac conforming type of loan. &#8220;Fannie and Freddie&#8221; establish a set of guidelines that lenders follow and then those loans are often sold to investors.[\/vc_column_text][vc_empty_space height=&#8221;15px&#8221;][vc_column_text]<strong>Types of Conventional Loans<\/strong><\/p>\n<p>The following are examples of conventional loans and they are the most widely used loans even more than government loans:<\/p>\n<ul>\n<li>Conforming (Fannie and Freddie)<\/li>\n<li>Non-Conforming &#8211; also are jumbo<\/li>\n<li>Sub Prime Mortgages &#8211; often for those with low scoress or cannot document income<\/li>\n<li>Portfolio Loans &#8211; Lenders set their own guidelines<\/li>\n<li>Jumbo Mortgages<\/li>\n<\/ul>\n<p>[\/vc_column_text][vc_empty_space height=&#8221;15px&#8221;][vc_column_text]<\/p>\n<p style=\"text-align: center;\"><a href=\"https:\/\/dreamhomefinancing.com\/\/LeadForm.aspx\"><span style=\"color: #0000ff;\"><strong>Click to Get a Free Rate Quote<\/strong><\/span><\/a><\/p>\n<p><strong>Pros and Cons of Conventional Mortgages<\/strong><\/p>\n<p><u>Pros<\/u><\/p>\n<ul>\n<li>Their are fewer restrictions vs government loans<\/li>\n<li>Flexibility on the term (10, 15, 20, 25 and 30 yr terms)<\/li>\n<li>Low fixed interest payments<\/li>\n<li>Available in adjustable rates for those who plan to be in the home for only a few years<\/li>\n<li>No upfront mortgage insurance fee<\/li>\n<li>Most buyers qualify for a conventional mortgage<\/li>\n<\/ul>\n<p><u>Cons<\/u><\/p>\n<ul>\n<li>PMI\u00a0(Private Mortgage Insurance)\u00a0is required with less than 20%\u00a0down<\/li>\n<li>Fewer options for those with poor credit<\/li>\n<li>Larger down payment are beneficial<\/li>\n<li>Fewest restrictions &#8211; for example, you dont need to be a veteran, your home does not have to be in a rural area, etc<\/li>\n<\/ul>\n<p>[\/vc_column_text][vc_empty_space height=&#8221;15px&#8221;][vc_column_text]<strong>Conventional Loan Rates<\/strong><\/p>\n<p>The rates are determined by indexes that change daily. Your personal scenario and other factors also are taken into consideration when determining your rate. The lower the credit score and the more you put down will give you the best chances for a low rate. The best way to find out is to\u00a0<a href=\"https:\/\/dreamhomefinancing.com\/\/LeadForm\/\">CLICK\u00a0TO\u00a0SPEAK\u00a0WITH\u00a0A\u00a0LOAN\u00a0OFFICER<\/a>\u00a0for a free consultation with no obligation to move ahead with a loan.[\/vc_column_text][vc_empty_space height=&#8221;15px&#8221;][vc_column_text]<\/p>\n<p><strong>Documentation Needed for a Conventional Loan<\/strong><\/p>\n<p>You will need to document your income and assets by providing the following..<\/p>\n<ul>\n<li>30 days of pay stubs<\/li>\n<li>2-3 months&#8217; bank statements<\/li>\n<li>Last 2 years tax returns<\/li>\n<li>Last 2 years W2&#8217;s<\/li>\n<li>Copies of stock or brokerage accounts<\/li>\n<li>Retirement or 401k Statement<\/li>\n<li>Plus copies of other documents depending upon your situation.<\/li>\n<\/ul>\n<p>[\/vc_column_text][vc_empty_space height=&#8221;15px&#8221;][vc_column_text]<strong>Mortgage Insurance (PMI) for a Conventional Loan<\/strong><\/p>\n<p>We mentioned above that if you put less than 20%\u00a0down, you will be required to have a monthly PMI\u00a0payment. The more you put down, the lower your PMI\u00a0payment will be. The higher your credit score, the lower your PMI\u00a0payment will be. PMI is regulated and you should have little concern about being over charged.<\/p>\n<p><a href=\"https:\/\/dreamhomefinancing.com\/\/LeadForm\/\">CLICK\u00a0TO\u00a0SPEAK\u00a0WITH\u00a0A\u00a0LOAN\u00a0OFFICER<\/a>\u00a0to find out what your estimated payment will be including PMI.[\/vc_column_text][vc_empty_space height=&#8221;15px&#8221;][vc_column_text]<strong>Conventional Loan Limits<\/strong><\/p>\n<p>The conventional loan limits are as follows&#8230;<\/p>\n<ul>\n<li>1 unit home $453,100<\/li>\n<li>2 unit home $580,150<\/li>\n<li>3 unit home $701,250<\/li>\n<li>4 unit home $871.450<\/li>\n<\/ul>\n<p>However, in high priced areas like Los Angeles, the limit is much higher at $679,650. Check with one of our loan officers to see if you are in one of those exception areas.[\/vc_column_text][vc_empty_space height=&#8221;15px&#8221;][vc_column_text]<strong>Properties That are Eligible For a Conventional Loan<\/strong><\/p>\n<ul>\n<li>Single family residences that are stand alone and detached from others<\/li>\n<li>Planned Unit Developments (PUDS)<\/li>\n<li>2-4 unit properties<\/li>\n<li>Manufactured Homes<\/li>\n<li>Condos<\/li>\n<li>Co-ops<\/li>\n<\/ul>\n<p>[\/vc_column_text][vc_empty_space height=&#8221;15px&#8221;][vc_column_text]<u><strong>Conventional Mortgage Loans Frequently Asked Questions<\/strong><\/u><\/p>\n<p><strong>Do I\u00a0need to have money for a down payment?<\/strong>\u00a0Yes, there are no conventional loan programs that are zero down.<\/p>\n<p><strong>Can I\u00a0get a conventional loan after a bankruptcy?<\/strong>\u00a0Yes you can, click to read more about\u00a0<a href=\"https:\/\/dreamhomefinancing.com\/\/MortgageAfterBankruptcy\/\">finding a mortgage after a bankruptcy.<\/a><\/p>\n<p><strong>I am recently divorced and dont have a two year work history. Can I get a conventional mortgage?<\/strong>\u00a0It is possible. Click to read more about\u00a0<a href=\"https:\/\/dreamhomefinancing.com\/\/MortgageAfterDivorce\/\">finding a mortgage after a divorce<\/a>.<\/p>\n<p><strong>My credit score is 580, can I\u00a0get a conventional loan?<\/strong>\u00a0Most conventional loans require a score of 620. Contact one of our loan officers to discuss your options. You may be better suited for an FHA\u00a0loan.<\/p>\n<p><strong>Do conventional loans require an inspection?<\/strong><br \/>\nInspections are not required, but they are recommended. Inspections help to protect home buyers by identifying issues like <a href=\"https:\/\/dreamhomefinancing.com\/house-with-an-old-roof\/\"><strong><span style=\"color: #0000ff;\">sagging or leaking roofs<\/span><\/strong><\/a>, cracked foundations, faulty wiring and pluming, <a href=\"https:\/\/dreamhomefinancing.com\/conventional-loan-peeling-paint\/\"><strong><span style=\"color: #0000ff;\">peeling paint that could contain lead<\/span><\/strong><\/a>, malfunctioning appliances, and more.<\/p>\n<p><strong>I am self employed and cannot fully document my income, can I\u00a0qualify?<\/strong>\u00a0Most likely not.\u00a0However, the good news is that we can most likely find a loan for you anyway. Click to read more about\u00a0<a href=\"https:\/\/dreamhomefinancing.com\/\/BankStatementLoans\/\">Bank Statement Loans<\/a>.[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n<\/section>","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_column_text]What is a Conventional Mortgage Loan? A conventional loan is one that is not insured (or guaranteed) by the government. Loans that typically are government backed are\u00a0FHA\u00a0Home Loans,\u00a0VA\u00a0Home loans, and\u00a0USDA\u00a0Loans\u00a0for rural areas. Conventional loans are usually a Fannie Mae or Freddie Mac conforming type of loan. &#8220;Fannie and Freddie&#8221; establish a set of guidelines that&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"_kadence_starter_templates_imported_post":false,"_kad_post_transparent":"default","_kad_post_title":"default","_kad_post_layout":"default","_kad_post_sidebar_id":"","_kad_post_content_style":"default","_kad_post_vertical_padding":"default","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"footnotes":""},"categories":[],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/dreamhomefinancing.com\/wp-json\/wp\/v2\/pages\/1919"}],"collection":[{"href":"https:\/\/dreamhomefinancing.com\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/dreamhomefinancing.com\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/dreamhomefinancing.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dreamhomefinancing.com\/wp-json\/wp\/v2\/comments?post=1919"}],"version-history":[{"count":8,"href":"https:\/\/dreamhomefinancing.com\/wp-json\/wp\/v2\/pages\/1919\/revisions"}],"predecessor-version":[{"id":6816,"href":"https:\/\/dreamhomefinancing.com\/wp-json\/wp\/v2\/pages\/1919\/revisions\/6816"}],"wp:attachment":[{"href":"https:\/\/dreamhomefinancing.com\/wp-json\/wp\/v2\/media?parent=1919"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dreamhomefinancing.com\/wp-json\/wp\/v2\/categories?post=1919"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dreamhomefinancing.com\/wp-json\/wp\/v2\/tags?post=1919"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}