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 (916) 371-6300 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%.
- Documentation
You’ll need to provide proof of your:
- income stability
- job history
- residences from the past two years
- income tax filings
- paystubs
(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 (916) 371-6300.
I purchased a home and completed a refinance with Lori, and she and her team make the process seamless. I will definitely call Lori for my future loan needs!
gotti916 on 2020-05-01
Lori and her team were patient and always answered my questions quickly. They took all the time I needed to feel comfortable every step of the process
zuser20160108180440041 on 2020-04-01
Lori was amazing to work with. She was on top of everything and extremely helpful thorough this home buying process! She helped us do a 21 day close. I would recommend her to any one wanting to purchase a home.
karissatucker1 on 2020-03-01
From start to finish a great experience. The technology was very easy to navigate and the follow through was great. There was consistent communication throughout the process.
Erin MacIsaac on 2020-03-01
We've been working with Lori since October 2013. Lori has been pleasant and extremely helpful for Us with our initial home purchase and refinancing. She made the process easy and non stressful. We wouldn't think of working with anyone else. She's guaranteed to get you what you want!
Qwntut on 2020-02-01
Lori is an extremely professional flexible loan agent. I have been working with her for several years now and she is the only person I have been going through for my loans and every time she has been honest with me about what to do and how to do it. I highly recommend her to whomever is looking to purchase their first home or buying a second or more property. She will be persistent and punctual with you and make things as easy as possible. She also has ana amzing team behind her that helped us along the way when Lori was unavailable.
BryanZombien on 2020-03-01
Lori was amazing. Wonderful experience in refinancing our home! The process was quick and easy, she saved us money and stress. Absolutely use her services in the future.
zuser20150923204901879 on 2020-03-01
Lori and her staff were awesome. They worked really hard for us in this trying time. They communicated with us all the way through the process which is important to me!
ncunningham123 on 2020-03-01
I recently purchased my home last year using the VA. I went to Lori less than a year later and they refinanced my home saving me almost 300 a month. Will definitely use her on my next home purchase!
desmondrobbins on 2020-03-01
We have now worked twice now with Lori and her team. We have worked with a few different lenders and Lori is by far the easiest. They are efficient and care about getting you the best deal. Definitely have recommended to family and friends.
user169098 on 2020-03-01
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