Conventional Loan Benefits
Here are some of the benefits of a conventional loan, refinance or cash out refinance:
• Conventional loans may be used to purchase investment properties or a second home
• No private mortgage insurance required if you put 20% down
• Down payments as low as 3% for home buyers who have not owned a home in the last three years
• A variety of flexible loan term options to fit your needs whether it’s a 15-year or a 30-year
• No upfront mortgage insurance premium
• The ability to refinance into a conventional loan from any other loan type that may allow you to take advantage of lower interest rates
Conventional Loan Eligibility
To be eligible for a conventional purchase, refinance or cash out loan you should have:
• Good credit, your rate is highly impacted by your credit in this program.
• Provide a down payment, ideally 20% to avoid Private Mortgage Insurance (PMI).
• Show proof of income and two years of tax returns.
• Cash reserves on hand to cover closing and additional costs.
• Ensure total debt does not exceed 45% of your income.