Conventional loans are loans that are not part of any government program. Unlike VA, FHA and USDA loans, they are not subsidized by the government, meaning that the homebuyer is expected to qualify on their own merit. What makes Draper conventional home loans appealing is that they tend to offer the best interest rates. That being said, they come with a few more stipulations than most other loans.
Who qualifies for a conventional loan?
Homeowners who have their sights set on conventional loans should expect to provide the following:
A standard down-payment of between 3-25%
Evidence of a stable income
A minimum credit score of 620
What To Expect With Simple Mortgage
With one of the top mortgage companies in Draper, you really can get conditionally approved to buy or refinance your home within 8 minutes. Our process, from application to closing, is designed to make your entire experience simple; saving you time, hassle and money. Our variety of flexible and fixed-rate mortgage options have never made it easier to clearly understand what is best for you and your family.
Advantages of conventional loans:
- If you put down more than 20% of the cost of your home you can almost immediately avoid Mortgage Insurance Premiums.
- Conventional mortgage insurance automatically ends when you hit 78 percent loan-to-value.
- Conventional mortgage insurance does not require an upfront premium like other loans but operates on a monthly basis. You won’t need an upfront payment on your mortgage insurance like you will with.
- Conventional mortgage insurance is only monthly or single premium (FHA is upfront and monthly premiums.
- Conventional mortgage insurance is credit sensitive meaning the better your credit the better your premium (For FHA, one premium fits all).
- Conventional loans can cover much higher loan amounts (FHA over county limits).