Conventional MORTGAGE: What is a Conventional Loan, How Does it Work?

MORTGAGE! Conventional Mortgage Loan| Conventional Loan |Conventional Home Loan | What Is A Conventional Loan? | Chris Trapani 310-350-2546 Chris Trapani the mortgage Pro 310-350-2546.
People often ask me about conventional loans, "What's a conventional Loan". Well, Fannie Mae or Freddie Mac, you may have heard those names over the years for a conventional loan, Fannie Mae and Freddie Mac are federally-backed home mortgage companies created by the U.S. Congress. ... Instead, they buy and guarantee mortgages issued through lenders in the secondary mortgage market.

00:00 Credit is the Most Important
1:23 Bankruptcy and Foreclosure
1:52 Collections
2:27 Down Payment Options
3:38 PMI
4:50 Large Down Payment?
5:20 Investment Property
6:05 Second Home
6:46 Income Requirements
8:18 Income Calculations
10:49 Everything needs to be Proven
11:33 Is Conventional the Perfect Loan?
12:14 Contact us!

Now to purchase a home with a Fannie Mae or Freddie Mac loan with as little as 3% down payment, they have requirements, standards, and guidelines that determine the acceptability of a home loan.

They have minimum credit standards of 620 FICO score for qualifying for a home loan, and seasoning requirements of 4 years must have elapsed before a person with a chapter 7 bankruptcy can be approved for a conventional home loan. If the client has a foreclosure in their past, 7 years must have elapsed since the foreclose was completed.

Other types of mortgages such as a VA loan and an FHA loan have shorter wait times after these types of negative credit situations.

For a down payment, as little as 3% down is all a home buyer would need to qualify to buy a home as a first time home buyer. Gone are the myths of a 20% down requirement!

For income and debt to income ratios, a conventional loan would usually require a 2-year work history though the 2 years can be obtained also through higher education. If you have gone to college or a trade school in order to obtain a higher level of training and did not work during this period, it is accepted as part of the 2-year work experience requirement.

For a debt ratio, 45% would be the maximum allowed with less than a 20% down payment. That means add the total new house payment to all debts. You would add, car payments, student loans (the payment that will be required even if you are in deferment) minimum credit card payments, and outstanding loans, child support, and alimony. The total must not be over the 45% limit.

For those with higher credit scores and a 20% or larger down payment, a debt ratio of up to 50% can sometimes be acceptable.

They do have limits to how much you can borrow. Every county is different and the loan limits change annually. Certain counties are classified as high-cost areas and the loan limits are increased (at a slightly higher interest rate and with a minimum of 5% down payment)

A conventional loan can often have advantages to those with a high down payment over an FHA loan if the borrower has high credit scores and or a larger down payment.

This video explains the details of a conventional mortgage and how to qualify and what might be the advantages for you! Conventional Loan requirements 2020

So, here's what I recommend, you call me Chris Trapani the mortgage pro and I'll sit down with you. We'll help you figure out what's the best program for you, what's gonna be the cheapest rate, what's gonna be the cheapest monthly payment, which is the best long term and short term. So let's put the package together. Call me and I'll help you fire your landlord!

What is a conventional loan? There are so many different types of loans out there and each one has its own guidelines and requirements. In this video, I talk about conventional loans and if it's the right loan for you. Call Chris Trapani at 310-350-2546
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#conventionalloan #conventional #mortgage

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