Q: What credit score do I need to qualify for a conventional loan?
A: A minimum of a 620 credit score.
Q: How much do I need for a conventional loan down payment?
A: For a conventional mortgage, a first time home buyer is a minimum of 3% down. For a repeat buyer, it would be a minimum of 5% down.
Q: What are the benefits of a conventional loan compared to other types of loans?
A: The benefit of a conventional mortgage if you are putting less than 20% down is once you get to a point where your equity reaches 20%, you can have the mortgage insurance removed.
Q: What type of homes can I purchase with a conventional loan?
A: You can purchase any single-family home; any multi-unit up to 4 units and any condo using a conventional mortgage.
Q: How can I access cash to pay off debt?
A: That would be based on whatever the appraised value is. On a conventional mortgage, your maximum loan devalue for a cash-out is 80%.
Q: Can I refinance if my home value is less than I owe?
A: No, you cannot.
Q: How do I know if I should refinance?
A: That would be based looking at your current mortgage statement to evaluate if there is a benefit. We have to justify to Fannie Mae that there is a net tangible benefit.
Q: Can I refinance to remove my PMI Insurance?
A: Yes, as long as you are currently on title- you can do that without any seasoning period.
Q: What documentation do I need for a conventional loan?
A: Documentation would consist of last two years of tax returns, last two years of W2’s, last 30 day pay stubs, last 2 months of bank statements, a copy of your ID, a copy of your social security card and most recent mortgage statement.