Conventional Loans
Conventional loans are Mortgage loans offered by non-government sponsored lenders. A conventional, or conforming, mortgage adheres to the guidelines set by Fannie Mae and Freddie Mac. It may have either a fixed or adjustable rate. When deciding if a Conventional Loan is best for you, we will typically look at the following:
- Credit Score – typically would like to be above 620
- Debt to income ratio
- Ability to put money down on the purchase – typically between 5% and 20%
Conventional Loans can be used for the purchase and refinance of the following property types:
- 1-4 Unit Properties
- Modular Properties
- Planned Unit Development Properties
Why choose a Conventional Loan?
When looking for a Conventional loan, most people are looking for a great rate, service with a personal touch, and an easy process. The Cain Mortgage Team at Luminate Bank, can typically match or beat most companies rates and our service is first class. As you can see from over 100 of our 5 star reviews online, our clients experience was second to none! Everyone has the cell phone number as the primary point of contact and are able, and encouraged, to call or text this number at any time. This makes communication simple, eliminates any misunderstandings and provides for a very smooth experience. So, when shopping for a Conventional Loan, give us a call to see how we treat everyone like a long term relationship, no just a transaction.
While many think that a 20% down payment is required for all conventional loans, many lenders now offer low down payment options. We offer down payments as low as 3% and no PMI with 5% down for qualified borrowers.
We are located in Columbia, SC but offer Mortgages in Columbia, Lexington, Blythewood, the surrounding areas, as well as the entire State of South Carolina. For more information, please complete the Quick Quote form to the right or call us at 803 261 9267! Let’s discuss your options, and you will see the Cain Mortgage Team offers unbeatable service. Please call today!
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Trusted. Experienced. Secure.What are the disadvantages of a Conventional mortgage?
Conventional mortgages typically have higher credit standards and tighter debt to income requirements. These two factors limit the liability for Fannie Mae and Freddie Mac and makes this type of loan harder to obtain for people who have credit challenges.
Is it harder to qualify for a Conventional loan?
Typically, it is more difficult to qualify for a Conventional loan than an FHA loan due to higher credit score requirements and lower debt to income standards. However, with a score in the upper 600’s, a Conventional loan is possible. Since the average score in America is 698, a Conventional loan is very possible for most people.
What qualifies you for a Conventional loan?
FHA loans have less stringent credit standards than conventional loans. FHA loans, which are backed by the Federal Housing Administration, allow you to get approved with as low as a 580 credit score and a 3.5% down payment. While Conventional loans can require a down payment of 3% (or 5%), you must have a credit score of at least 620 to be eligible.
Contact your local C. David Cain for more information or to see if you qualify for a Conventional loan.
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