Conventional sounds so… conventional.
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
Ask one of these companies to help… Heres what you’re gonna wanna know about a conventional home loan.
What Is a Conventional Loan?
Did you know?
But that comes at a price, compared to the cost of a conventional loan.
Heres how to decide whether a conventional loan is a better fit for you.
How Do You Qualify for a Conventional Loan?
As with any loan, there are metrics you must meet to qualify for a conventional loan.
Thats not an easy bar to clear for most first-time buyers.
To attract more customers, lenders have relaxed the 20% rule.
Or they may run a special and call it a conventional mortgage with 1% down.
However, lenders have been willing to go even higher, given the right circumstances, according to Hamilton.
[Lenders] will make exceptions if you have a lot of cash reserves, she said.
Some lenders are going as high as 55% DTI with those exceptions.
How Much Can You Borrow?
For most people, that means applying for a conforming loan.
Youll typically need a combination of really high credit score, large down payment and/or low DTI to qualify.
What Are the Benefits of a Conventional Home Loan?
Check in and decide, Should Irefinance?
Whats the best long-term strategy?
Consider it conventional wisdom.
Tiffany Wendeln Connors is a staff writer/editor at The Penny Hoarder.
Readher bio and other work here, then catch her on Twitter @TiffanyWendeln.
(Can you sense my millennial sarcasm there?)
You know which ones were talking about: rent, utilities, cell phone bill, insurance, groceries…
