Conventional Loans In Medina Ohio
Enjoy A Faster Processing Time And Low Interest Rates
What is a Conventional Loan?
A conventional loan is a home buyers loan that isn’t offered or secured by a government entity such as FHA. But it is available through private lenders like banks, credit unions and mortgage companies. Conventional loans can also be guaranteed through Fannie Mae and Freddie Mac. Interest rates for these types of loans are usually higher than those backed by government mortgages like FHA loans.
What are the benefits of a Conventional Loan?
The benefits of a Conventional Loans include low interest rates, fast loan processing, diverse down payment options, various term lengths on a fixed-rate mortgage, ranging from 10 to years, and reduced private mortgage insurance (PMI)
What are the qualifications for a Conventional Loan?
There are certain requirements to obtain a conventional loan and important variables to consider. Lenders want to see that you can afford your monthly payments, if you can handle your down payment, even afford broker fess/closing costs etc. The most important documents to consider will be proof of income, assets, and employment verification. As a general bench mark, having a credit score of at least 680 is preferred. Your DTI (debt-to-income ratio) should be around 36% and no more than 43%. Your down payment should be at least 20% of the home’s purchase price, some lenders accept less
What kind of property can I get with a Conventional Loan?
Duplexes, single-family homes, townhouses, 2-4 unit properties, and condominiums.
What are the different types of Conventional Loans?
There are two types of conventional loans; conforming and non-conforming. Conforming Conventional Loans follow the guidelines set by Fannie Mae and Freddie Mac. These guidelines mean that there is a loan limit. For one-unit properties the baseline is $453,100, keep in mind that the baseline changes yearly to match housing-price changes. For high-cost areas, the loan limit is around $679,650. Non-conforming Conventional Loans is a conventional loan not purchased by Fannie Mae or Freddie mac. These loans are funded lenders or private institutions.