Conventional

A conventional loan is a loan that is not a part of a specific government program and not insured by the U.S. Government. Conventional loans typically cost less than FHA government loans but can be more difficult to get. Conventional loans offer quite low interest rates to the borrowers with excellent credit scores and are set by Fannie Mae or Freddie Mac’s guidelines. At UniqLend, we offer many conventional loan programs such as:

  • Fixed rate from 10 to 30 years
  • Adjustable-rate: 3/1, 5/1, 7/1 and 10/1 ARMS along with a 5/5 ARM option
  • Freddie Mac Home Possible
  • Fannie Mae HomeReady
  • Property Types Unlike many government-backed loans which are limited to primary residences, conventional loans can be used to finance primary homes, second homes, and investment properties.

Requirements:

Minimum Credit Score: Generally a minimum of 620 is required, though scores above 740 often secure better interest rates.

Down Payment: As little as 3% down is possible for qualified first-time homebuyers, but a 20% down payment allows you to avoid paying Private Mortgage Insurance (PMI).

Debt-to-Income (DTI) Ratio: Lenders generally prefer a DTI ratio below 43% of your gross monthly income, although up to 50% may be accepted with other strong qualifying factors.

Documentation: You will need to provide proof of stable income and assets, such as W-2 forms, tax returns, pay stubs, and bank statements for the past two years.