The Conventional Loan

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Conventional Loans

A conventional home loan is a mortgage that is not insured by the federal government, so their terms are more flexible than USDA, FHA or VA loans. Offering low interest rates, they’re a great fit for customers with good credit and financial stability who can afford a down payment.

Qualifying for a Conventional Loan

The standard criteria for qualifying for a conventional loan is outlined below.

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Credit score

You should also carry good credit (typically a FICO score of 620 or greater), and total debt that does not exceed 45% of your income.

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Down Payment

You’ll also likely need to provide a down payment on the home (as low as 3%, but ideally 20% or more in order to remove the possibility of paying a monthly Mortgage Insurance tax.)

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Mortgage Insurance

Mortgage insurance is an insurance policy that protects a mortgage lender or titleholder if the borrower defaults on payments, dies or is unable to meet the contractual obligations of the mortgage. One commonly-required insurance type is Private Mortgage Insurance (PMI).

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Loan Limitations

As of 2019, that limit for most of the country is $484,350. That limit can go higher in counties where the housing costs tend to exceed the national average – up to $726,525 in some cases.

Why would an Conventional Loan be the best choice for you?

Without Federal Government-mandated procedures to deal with, Conventional loans are simple to apply and qualify for. With tons of options and customizable terms available, we can craft a conventional loan that perfectly aligns with your financial status and long-term goals.

Required down-payments can be set as low as 3% of the home cost, making Conventional Loans more attainable than ever. By confirming our customers’ financial stability and credit score, we can offer amazingly pow interest rates.

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The AnnieMac Promise

Here at AnnieMac Home Mortgage, we take the time to walk you through the mortgage process and ensure that you are financially ready for a mortgage commitment. If a conventional loan is needed and is something you can afford, we will be there for you every step of the way.