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Fixed-rate loan program for borrowers with good credit and larger down payments

Conventional Loan Quick Facts

3%Down

Minimum Down Payment

620Credit

Minimum Credit Score

45%DTI

Max Debt-to-Income Ratio

What is a Conventional Loan?

A Conventional Mortgage is simply any mortgage loan that is not insured or guaranteed by the federal or state government. Conventional Mortgages typically require a higher down payment, usually 5%–20%. They also have higher income and credit score requirements than government loans. Conventional loans are most commonly a 30-year fixed rate loan term, but are also generally offered in 25, 20, 15, and 10 year loan terms.

What are the benefits of a Conventional Loan?

Conventional Loans offer the following features:

  • Buyer has immediate equity in the property.
  • No private mortgage insurance is required with a 20% down payment.
  • Closing costs and fees may be included in the loan.
  • Fewer bureaucratic hurdles, making the loans quicker to process.
  • No government stipulations and prepayment penalties if you sell or refinance your house.

Who may benefit from a Conventional Loan?

Conventional Loans may the right fit for you if:

  • You’re a first-time or repeat homebuyer
  • You have a good credit score and money to put down.
  • You want a low down payment.

Sample Loan Scenarios:

10-year Loan Scenario: $200,000 purchase price, $160,000 loan amount, 20% down payment, $1,906.84/month (PITI), 10-year fixed 5.125% interest rate, 5.418% APR.

15-year Loan Scenario: $200,000 purchase price, $190,000 loan amount, 5% down payment, $1,661.67/month (PITI), 15-year fixed 4.125% interest rate, 4.565% APR.

20-year Loan Scenario: $200,000 purchase price, $160,000 loan amount, 20% down payment, $1,278.15/month (PITI), 20-year fixed 5.25% interest rate, 5.413% APR.

25-year Loan Scenario: $200,000 purchase price, $160,000 loan amount, 20% down payment, $1,181.58/month (PITI), 25-year fixed 5.49% interest rate, 5.63% APR.

30-year Loan Scenario: $200,000 purchase price; $194,000 loan amount; 3% down payment; $1,503/month (PITI); 30-year fixed 5.49% interest rate; 6.321% APR.

Loan Scenario: $200,000 purchase price; $190,000 loan amount; 5% down payment; $1,249.19/month (PITI); 30-year fixed 5.250% interest rate; 5.289% APR.

Loan Scenario: $200,000 purchase price; $160,000 loan amount; 20% down payment; $1,084/month (PITI); 30-year fixed 5.25% interest rate; 5.371% APR.

Texas
Meet Your Mortgage Expert for
Conventional Loans

Salazar Team

Loan Officer | NMLS #1456434

With me as your lender, you will never ask yourself why isn’t he answering my calls or why isn’t he available. Whether you’re a first time home buyer or not, this is one of the most important times in your life, you are embarking on one of the biggest commitments you will ever make.

Corp NMLS #214519 | Equal Housing Lender

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Is a Conventional Loan right for you?

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