Conventional Loan
Conventional loans are a popular mortgage option for qualified borrowers seeking to finance their Texas dream home. Unlike government-backed loans, conventional loans are offered by private lenders and adhere to their qualifying standards.
SPECIFICS
- Max loan amounts up to $647,200
DOWN PAYMENT REQUIREMENTS
- 3% For first-time home buyers
- 5% for non-first-time home buyers
- 10% for second/vacation home (must be located a reasonable distance from primary) 20% for investment property
- Gifts for a down payment are allowed
CREDIT SCORES
- 680+ preferred, minimum 620 with PMI (rates tiered every 20 pts, the higher the better)
DEBT TO INCOME RATIOS/FIXED-TERM RATES
- DTI up to 49%
- Fixed rate terms: 10. 15, 20, 25, & 30
PRIOR LOAN DEFAULT WAITING PERIODS
- Bankruptcy- Chapter 7- is 4 years from discharge
- Bankruptcy- Chapter 13- is 2 years from discharge, or 4 years from dismissal Short Sale- 4 years
- Shorter waiting periods may be considered with extenuating circumstances
OTHER IMPORTANT FACTS
- No funding fees
- Maximum number of financed properties is 10
- Interested party contributions: 3%-6% (Depending on LTV)
MORTGAGE INSURANCE
- Mortgage Insurance is required if less than 20% down payment PMI is removed after the balance reaches 78% of the initial sales price
