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Conventional Loans

A conventional loan is a home loan that is not a part of any government program. It is offered through private lenders and can be guaranteed by Fannie Mae or Freddie Mac.

Benefits of a Conventional Loan

Conventional loans do not have geographical limitations like USDA loans, excluding Home Possible and Home Ready. There is no funding fee like with VA loans. These loans can be used to finance primary, secondary, and investment properties. The conditions of the home can be more lenient if renovations are needed since it is not a government-backed loan.

The myth of needing a 20% down payment comes from conventional loans. That is because if you make a down payment of 20%, which is not required, you will not have to have mortgage insurance on your loan. Premium mortgage insurance (PMI) can be removed from the loan after78% of the loan has been paid off.

Eligibility

 

Required Documents

To begin the mortgage process, you will need the following:

  • Previous two years of W2’s
  • Previous thirty days of pay stubs
  • Past two months of bank statements

General Requirements

These are general requirements. Please consult your mortgage advisor for specific requirements for your loan and situation.

  • A minimum credit score of 620
  • Minimum down payment of 5% (Higher credit scores might be eligible for lower down payment options and more attractive rates)

 

Contact Us!

JTS & Co. Mortgage Professionals is a locally trusted lending company that can help you get started on your homebuying journey. Call us to talk to one of our friendly loan officers or fill out our brand-new application!