A conventional loan, also called a conventional mortgage, requires borrowers to follow criteria to ensure they’re qualified to borrow from the lender. These loans require potential buyers to maintain a credit score of 680 and above, make a down payment between 5% and 20% of the price of the home, and maintain a debt-income ratio of under 43%. Conventional loans aren’t directly backed by the government and require stricter credit and financial standards. Infiniti Mortgage is able to negotiate with potential lenders, earning you the best possible interest rates.

Conventional loans can be obtained through private mortgage lenders, including banks, credit unions, online lenders, and mortgage brokers. Mortgage brokers can help borrowers compare rates and terms from multiple lenders, finding the best rates possible for borrowers. This type of mortgage can be used to purchase a primary residence, second home, or rental property, and can help borrowers build equity through their residences.

Obtaining a conventional loan offers many advantages for borrowers as they can be used to acquire properties like residences, vacation homes, rentals, and other properties that require a mortgage loan. These loan advantages include more equity for borrowers, flexible interest rates that are negotiated with the help of Infiniti Mortgage, less paperwork required to obtain other loans such as an FHA or VA, and no PMI once you reach 20% equity.

The biggest advantage of conventional loans is that they do not require private mortgage insurance (PMI). PMI is a fee that many homeowners must pay when they have a low down payment or a high debt-to-income ratio. PMI can be canceled once you build up 20% equity in your home, saving you money. Another great advantage of conventional loans is that they are widely available and their interest rates can be negotiated as they are either fixed or adjustable.

Infiniti Mortgage has expert brokers ready to discuss your needs and wants when looking at conventional loans. We’ll help you determine if a conventional loan is right for you, and assist you in obtaining your loan.

If you’re thinking about buying a home with a conventional mortgage, you should know that Infiniti Mortgage can help you understand this type of loan and assist you in determining which of these loans you’re pre-qualified for and how you can qualify for a conventional loan. Conventional loans can be conforming or non-conforming, depending on whether they meet guidelines set by Infiniti Mortgage.

Conforming conventional loans have maximum loan amounts established by the Federal Housing Finance Agency, which also sets standards for credit score and debt-to-income ratio eligibility. Non-conforming conventional loans have less standardized requirements and can be harder to qualify for.

Either way, qualifying for a conventional loan is straightforward if you have sufficient income, good credit, and a substantial down payment. You’ll also need to be prepared to pay for private mortgage insurance, which protects the lender if you default on your loan.

In order to qualify for a conventional loan, you must have a credit score above 620 and an acceptable debt-to-income ratio. Lenders will verify your income by reviewing pay stubs and W-2 forms to ensure you earn enough to afford a mortgage payment. Infiniti Mortgage can help make this process as smooth and easy as possible.

One advantage of conventional loans is the ability to obtain a lower interest rate by negotiating with a lender. This is where the experienced brokers at Infiniti Mortgage in Albuquerque can help. We’ll assist you in figuring out if you’re qualified for this type of loan and contact lenders to negotiate the lowest interest rate possible for you. We’re dedicated to providing our clients with high-quality loan services to ensure you’re getting the lowest interest rate for the home you’ve been looking at.