What is a Conventional Loan?
Conventional loans are mortgage loans offered by non-government sponsored lenders. A conventional or conforming mortgage adheres to the guidelines set by Fannie Mae and Freddie Mac. It may have either a fixed or adjustable rate. Conforming mortgages have dollar amount limits, currently $647,200 for a one unit property and higher for two, three or four units. A 20% down payment is not required for all conventional loans. Many lenders offer lower down payment options. We offer conventional loans in Portland, all of Multnomah County, or anywhere else in Oregon. Contact Ron for more information at (971) 219-0856.
Why should I use a Conventional Loan?
Conventional loans frequently provide better interest rates than jumbo loans or other mortgage loan products. Qualified borrowers will be determined by credit history, debt to income ratio, and income, and possibly other factors. Conventional loans should provide more financing options and underwriting flexibility, with lower loan costs and less time to complete the loan transaction.
Conventional Loan Mortgage Insurance
Conventional mortgage insurance is required by a lender to protect its investment when there is less than a 20% down payment or equity position. Mortgage insurance is paid by the borrower as a monthly payment, a one-time payment, incorporated into the interest rate, or a combination of more than one option. Credit scores, loan to value ratio and other factors will determine the amount of the mortgage insurance.
Conventional Loan Requirements
Lenders have several requirements for successful underwriting of conventional loans. These include sufficient borrower income, assets, and credit scores. Property condition and liens, property function, location, construction method, employment and credit history are some others. While there may be flexibility with conventional loan requirements, it is important to consider all contributing loan factors together before a loan is submitted to underwriting. Working with an experienced qualified loan officer who prescreens borrowers before pre-approving is an important step to meeting conventional loan requirements. Ron will communicate with you before your loan is submitted to avoid loan delays later in the process.
Work with a Qualified Mortgage Lender
Ron Burian is committed to helping his clients with all of their Conventional Loan needs in Portland, Multnomah County, or anywhere else in Oregon. If you are purchasing a property for the first time or are looking to refinance your old (non-conventional) loan into a conventional loan, Ron can help. Contact him today at (971) 219-0856. for any questions you may have on Conventional Loans or how to get pre-approved!