Conventional Loan
Conventional loans are what many people think of when they think traditional home mortgage. This loan is not tied to any government agency but does follow guidelines outlined by Freddie Mac and Fannie Mae (two government controlled companies that provide money for the US housing market). It is because of this that conventional mortgages don’t typically have the same perks as government backed loans, such as low credit score requirements and no down payment.
What is it?
A conventional loan simply refers to any mortgage loan that is not insured or guaranteed by the federal government. Conventional loans have various terms available.
Private mortgage insurance (PMI) is required if your down payment is less than 20%; tacking on an extra monthly fee. As with most loans, the minimum credit score requirement is based on market conditions but compared to the other loan programs this one requires a higher credit score.
Conventional mortgages do not require the property to be a primary residence, as many of the other mortgage options do, making this the typical loan program for investment properties. Whether it is your primary residence or not, the property must be in good order (it cannot have any health or safety deficiencies, which your appraisal will rule out). And while you can have land and a garden with a conventional mortgage– the property cannot be farmed for income.
Talk to a loan officer to find out if this is the best option for you.
Why is it different from other mortgages?
Conventional mortgages do not require the property to be a primary residence, as many of the other mortgage options do. Additionally, condominiums, if approved, are allowed. As mentioned earlier, conventional loans also carry higher down payment and credit score requirements than government backed loans. Another perk: conventional loans do allow for some gift funds to cover the down payment– of course there are guidelines in doing so.
Give me all the details.
When it comes to how much we can lend, we have limits; conforming loan limits to be exact. These maximum loan amounts are determined by county and can be provided by your mortgage banker or found here. If you require a larger loan amount, you are looking for a non-conforming loan. These are less common but can certainly be discussed, just reach out to one of our mortgage bankers.
Conventional Mortgage loans can be both fixed or adjustable rate mortgages.
If you have concerns about bankruptcy in the past, you can find more information here.
Loan Programs
Bank Statement
Being your own boss shouldn’t mean a backbreaking path to homeownership. Self-employed borrowers can relax with Stockton Mortgage’s bank statement program, with alternative documentation options of 12 or 24 months of bank statements.
Doctor Loan
This loan program helps medical professionals qualify for a home loan, even with student loans and limited savings. Eligible borrowers include currently practicing medical professionals or those who’s employment will start within 90 days of closing.
FHA Loan
The Federal Housing Administration (FHA) loan is a great option for borrowers without a large amount in savings.
Hobby Farm Home Loan
The Hobby Farm loan is for homes with 5 – 160 acres. Rural areas, non-contiguous parcels permitted. Not eligible for full time Farming operations. This program is good for customers looking for a place to have horses, hunting property, etc.
Home Equity Line of Credit (HELOC)
This alternative to a cash-out refinance allows a borrower to use the equity in their home without refinancing their mortgage.
Investor Cash Flow Loan
With Stockton Mortgage’s Investor Cash Flow Loan, it’s never been easier to break into real estate investing. This program allows you to utilize the future income rental of a property to determine cash flow – meaning that if portfolio growth is a goal, the Cash Flow Loan could make it happen.
ITIN Loan
Stockton Mortgage offers solutions for people who have an Individual Tax Identification Number (ITIN) who are looking for a mortgage or wish to finance their existing mortgage. With our ITIN Loan Program, we may be able to utilize written verification of employment and bank statement payroll deposits in lieu of paystubs.
Jumbo Loan
A great option for large loan amounts; too large for a conventional loan. Loan amounts up to $3 Million for owner occupied or $2 Million for second home. This program varies by state, please ask your mortgage banker for more information.
Low Down Payment, New Construction Loans
We offer new construction loans for VA, FHA and USDA Loans. These programs are good for customers that can’t find an existing home to purchase.
Renovation Loan
We offer a variety of renovation options, rolling the cost of the home repairs into the mortgage. The FHA 203k provides a low-down payment option with structural changes, as well as, minor updates such as painting. The Homestyle provides an option for adding luxury upgrades such as in-ground pools and outdoor kitchens.