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.