A conventional loan can be conforming or nonconforming and have either fixed or adjustable rates.
No mortgage insurance required (with 20%+ down payment)
As little as 3% down, some restrictions apply
Gifted down payments are acceptable
No upfront mortgage insurance premium (UFMIP)
Mortgage insurance is removed automatically as applicable
Typically, lower cost than other loan products
Makes for a stronger purchase offer than FHA or VA
Monthly mortgage insurance (if required) is generally less than FHA loans
Restrictions on gift funds for down payment and closing costs
Minimum credit score required
Generally requires larger down payments than federally insured loans
Interest rates are typically higher than that of FHA or VA loans
Conventional Loan Checklist
Conventional loans use Fannie Mae or Freddie Mac guidelines to establish set lending standards throughout the mortgage industry. The guidelines include minimum allowable credit scores, income requirements, and minimum down payments.
When you are applying for a conventional loan, the following list of documents will help expedite the process. We can help you understand any part of the conventional loan process, so please reach out to us with any questions.
Completed tax returns from the past two years. (If you are self employed or have investment properties. You do not need these if you are a W-2 wage earner.)
W-2s, 1099s, and any other necessary tax forms from the past two years.
Most recent paystubs from the last 30 days.
Self-employed borrowers need taxes for 1-2 years and a YTD Profit and loss.
Full bank statements for all accounts from the past two months.
Most recent statements from investment accounts (retirement, 410k, mutual funds, etc.) from the past two months.
Driver's License or other official state identification.
Any Divorce, Alimony documents. (We need a copy of your divorce decree to show if there are any outstanding payments.)
Green card or work-permit (if/as applicable).
Current mortgage statement and insurance policy for all properties owned (if applicable).