Conventional Purchase Loan
If you have great credit, you should be rewarded for it. Conventional loans are available with as little as 5% down for borrowers with a strong credit profile. (Loans with less than 20% down require mortgage insurance).
Oceanside Mortgage is a Freddie Mac approved seller/servicer, so we have much more flexibility with what types of conventional loans we can offer. We offer many mortgage insurance options for borrowers putting between 5 and 20% down. Flexible options such as monthly mortgage insurance, single payment mortgage insurance, and lender paid mortgage insurance are available for our borrowers. Most other companies only offer monthly mortgage insurance, which increases the amount you have to pay each month.
Who qualifies for a Conventional loan?
Credit: Conventional loans are best for borrowers with a strong credit history. Most times, if you have at least a 720 credit score, a conventional loan is your best option. The minimum credit score for a conventional loan is a 620. Don’t worry if you are unsure which program is best for you, a loan officer can help you find the best fit for your situation.
Income: Conventional loans are ideally suited for individuals who spend no more than 28% of their gross income on their mortgage, and no more than 36% of their gross income on all of their monthly obligations. If a borrower has compensating factors, many times we can approve a loan for a borrower who’s debt is as high as 45% of their gross monthly income.
Assets: Conventional loans with less than 20% down require that at least 5% of the down payment comes from the borrower. The balance can be a gift from a family member. If you are putting 20% down, the entire down payment can be a gift from a family member.
Property: Most single family, condos, planned urban developments (PUD), and townhouses are eligible for a conventional loan.
Why use a Conventional loan?
Large down payment: If you have 5 or more percent to put down, a conventional loan is a great option for most borrowers
Great Credit History: If you have an excellent credit history, a conventional may offer the lowest payments and fees.
Payment Terms: A conventional loan offers the best mortgage insurance options for borrowers who require mortgage insurance. This means you will have a low monthly payment
How Do I Get Started?
Please contact a loan specialist immediately to get the process started. We can provide you with a no-cost, no-obligation, pre-approval and closing cost estimate! There are 3 ways to do this:
- Call us toll free at 800-955-8965
- Fill out our contact form
- Chat live with a loan officer now
There are a few documents we need you to collect to process your loan. Do not worry if you cannot locate all of the documents, we should be able to help you. We will need:
- Drivers License
- 2 Year’s W-2s
- 30 Day’s Paystubs
- 2 Month’s recent Bank Statements
- Homeowners Insurance Declaration Page or Agent’s contact info
- Purchase Contract (If you are already under contract)
- Copy of Deposit Check (If you are already under contract)