What is a Conventional Loan?
Conventional loans are mortgage loans offered by Fannie Mae and Freddie Mac and not guaranteed by any government agency. Fannie and Freddie have their own specific underwriting guidelines that they follow and are the largest investors of conventional loans. They offer fixed and adjustable rate loans. Lincoln Mortgage Solutions LLC offers conventional mortgages throughout New Jersey.
While many people think that you’re required to put down 20% to purchase a home that isn’t really correct. Fannie and Freddie have excellent programs with as little as 3% down subject to obtaining mortgage insurance for the amount of the loan that is more than 80% of the value of the property. The minimum credit score requirement is 620 and the maximum debt to income ratio today is up to 50% with great credit and assets.
First Time Homebuyer Programs
Fannie Mae offers HomeReady and Freddie Mac offers HomePossible. Both programs allow 3% down payment and each will let you get help with your down payment and closing costs thru a Down Payment Assistant (DPA) programs. Check with me for details.
Benefits of Conventional Loans
The main advantage of a conventional loan is that the borrower can avoid paying the upfront mortgage insurance and the monthly mortgage insurance of an FHA loan and when your home reaches 80% loan to value you can request the mortgage insurance be removed.
Conventional Loan Limits
Each county has a maximum loan amount available under this program. Check with me for details.
Get Pre-Approved for a Conventional Loan
If you are looking to purchase a home or refinance in Summit, or anywhere in New Jersey, contact Lincoln Mortgage Solutions LLC at (201) 405-2187 for more information, or simply fill out the form on this page. We respond within 24 hours!