Conventional Loan
Conventional Loan
Welcome to 1st 2nd Mortgage, where we offer conventional loan options tailored to meet your specific needs and financial goals. Our conventional loans provide a flexible and affordable financing solution for purchasing or refinancing your home.
Here are the key things you should know about our conventional loan product:
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Fixed or Adjustable Rates: With a conventional loan from 1st 2nd Mortgage, you have the option to choose between fixed or adjustable interest rates. Fixed-rate loans offer stability and predictability, with the same interest rate throughout the life of the loan. Adjustable-rate loans provide flexibility, with interest rates that may fluctuate over time based on market conditions.
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Flexible Loan Terms: Our conventional loans offer flexible loan terms to accommodate your budget and financial goals. Whether you prefer a shorter loan term for faster equity build-up or a longer loan term for lower monthly payments, we have options to suit your needs.
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Low Down Payment Options: While conventional loans typically require a down payment, we offer low down payment options to make homeownership more accessible. With as little as 3% down, you can qualify for a conventional loan and achieve your dream of homeownership without breaking the bank.
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No Mortgage Insurance: Unlike FHA loans, which require mortgage insurance premiums for the life of the loan, our conventional loans offer the option to avoid mortgage insurance altogether with a down payment of 20% or more. This can result in significant savings over the life of the loan and lower monthly payments for borrowers.
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Streamlined Application Process: At 1st 2nd Mortgage, we understand that the mortgage application process can be daunting. That's why we offer a streamlined application process with quick approval times and personalized service every step of the way. Our experienced loan officers are here to guide you through the process and ensure a smooth and stress-free experience.
Our conventional loan product offers flexibility, affordability, and convenience for homebuyers and homeowners alike. With competitive rates, flexible terms, and personalized service, 1st 2nd Mortgage is your trusted partner in achieving your homeownership goals. Contact us today to learn more about our conventional loan options and discover how we can help you finance the home of your dreams.
What you need to know about a
Conventional Loan
With a conventional loan from 1st 2nd Mortgage, you gain access to a diverse array of benefits designed to make your homeownership journey seamless and rewarding. Enjoy the freedom to choose between fixed or adjustable interest rates, allowing you to tailor your loan to match your long-term financial objectives. Plus, benefit from our flexible loan terms, enabling you to strike the perfect balance between equity buildup and monthly payment affordability.
At 1st 2nd Mortgage, we understand the significance of a low down payment, which is why we offer options that require as little as 3% down, making homeownership more attainable for individuals and families. What's more, our conventional loans provide the opportunity to forgo mortgage insurance premiums with a down payment of 20% or more, putting more money back into your pocket over the life of the loan.
Navigating the mortgage application process can be daunting, but with 1st 2nd Mortgage, it's a breeze. Our streamlined application process ensures quick approvals and personalized assistance from our team of experienced loan officers every step of the way.
Whether you're a first-time homebuyer or a seasoned homeowner looking to refinance, trust 1st 2nd Mortgage to guide you towards achieving your homeownership dreams with our exceptional conventional loan offerings.
Who Qualifies?
Qualifications for a fixed-rate mortgage typically include:
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Credit Score: Lenders consider credit scores when evaluating mortgage applications. While specific requirements may vary among lenders, a higher credit score generally increases the likelihood of approval and may result in better loan terms, such as a lower interest rate. Typically, a credit score of 620 or higher is required to qualify for a fixed-rate mortgage, but some lenders may have higher or lower thresholds.
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Income and Employment: Lenders assess borrowers' income and employment stability to ensure they have the financial means to repay the loan. Borrowers typically need to provide proof of income, such as pay stubs, W-2 forms, or tax returns, to verify their employment status and income level. Lenders may also consider other sources of income, such as bonuses, commissions, or rental income.
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Debt-to-Income Ratio (DTI): Lenders evaluate borrowers' debt-to-income ratio, which compares their monthly debt payments to their gross monthly income. A lower DTI ratio indicates less financial strain and a higher likelihood of mortgage approval. While specific DTI requirements may vary, most lenders prefer a DTI ratio of 43% or lower, although some may accept higher ratios with compensating factors.
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Down Payment: Borrowers typically need to make a down payment when purchasing a home with a fixed-rate mortgage. The size of the down payment required depends on various factors, including the type of mortgage, loan amount, and lender requirements. Conventional fixed-rate mortgages often require a down payment of at least 3% to 20% of the home's purchase price, while government-backed loans such as FHA or VA loans may require lower down payments, sometimes as low as 3.5% or 0% for eligible borrowers.
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Property Appraisal: Lenders typically require a professional appraisal of the property to determine its value and ensure it serves as adequate collateral for the loan. The property appraisal helps protect both the lender and the borrower by ensuring the property's value aligns with the loan amount.
Meeting these qualifications demonstrates to lenders that borrowers have the financial stability and ability to repay the loan, increasing their chances of securing a fixed-rate mortgage with favorable terms and interest rates.
