Conventional Home Loan Advantages
A “conventional mortgage” simply refers to any mortgage loan that is not insured or guaranteed by the federal government. Whether you are purchasing a new home or refinancing a current home, a conventional loan from Magnolia Bank Home Loans in Columbia, MO might be the right loan for you, depending on total loan to value, fico score and debt-to-income rates. Interest rates on conventional loans in Columbia, MO and across the United States vary depending on credit score and down-payment, but conventional home loans have the potential for the most competitive rates and closing costs.
- Are you looking to buy vacation homes or investment properties?
- Are you looking for low or no private mortgage insurance?
- Are you looking purchase property for your children to live in while attending college?
- Are you looking to buy a new home or refinance a current home?
If you answered “Yes” to any of these questions, Magnolia Bank Home Loans in Columbia, MO is the perfect mortgage lender for you. Call Magnolia Bank Home Loans today, or fill out the form on the side to get in contact with one of our loan officers.
What is a conventional loan?
- Any loan that is not guaranteed by the federal government, such as FHA loans or VA loans.
- Maximum loan amount allowed for a conventional conforming loan varies from county to county. In high-cost areas, the limit can reach $625,500.
- Interest rates for conventional loans vary depending on credit score and down payment.
- Choice between fixed and adjustable rates.
- Terms available from 10 to 30 years.
Conventional Loan Requirements & Qualifications
- Debt-to-income ratio – Standard debt-to-income ratios are 28/36 for Conventional loans.
- Down Payment – Conventional loans require the home buyer to invest at least 5-20% of sales price in cash for the down payment.
- Credit scores – Conventional credit standards are flexible, but a FICO score of 620 or above is very helpful in obtaining approval.
- Documentation – When applying for a qualified mortgage, you will need documentation of your income.