Conventional Loan
What is a Conventional Loan Mortgage?
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.
Not the right fit for you?
Wheatland Bank offers many additional mortgage products for you to consider. Contact a member of our team today and we will be happy to answer any questions you may have. We will also work with you to identify the right loan for your situation.