Conventional Loan Eligibility
A conventional loan tends to follow Fannie Mae and Freddie Mac guidelines. Banks and other financial institutions issue a conventional loan – sometimes referred to as ‘regular loans.” A conventional loan is privately backed – unlike the government-issued FHA, VA and USDA loans. Because it’s the banks that put their “necks on the line,” guidelines and eligibility requirements tend to be more stringent than some of the federal loan programs.
There are many advantages for those that qualify for a conventional loan. Call 480-788-0232 to learn more about why a conventional loan might be right for you.
Below are some of the general eligibility requirements of a conventional loan. Because each case is different, make sure to call us to determine if you qualify.
(This is just an initial list of paperwork that will need to be provided. Based on your income, assets, liabilities and profits more paperwork may be requested.)
Also, if you are not a U.S. citizen, residency or visa paperwork may be required.
Why such a big process to apply for a conventional loan?
If you think about it – the banks are taking a big risk to loan you enough money to buy a house. They receive thousands of applications each week from hopeful homeowners and investors requesting to borrow funds. To determine who is likely to repay the loans, the banks must set eligibility requirements. Unlike the FHA, VA loans and USDA loans that are backed by the government, there is more risk to the private lenders when they issue a conventional loan. Therefore, stricter guidelines apply.
The conventional loan experts at Leader One will be with you step-by-step to walk you though the process. If there is any way that you may be eligible for a conventional loan, they will make it happen.
To learn more and see if you meet conventional loan eligibility requirements, contact me at 480-788-0232.