Conventional loans are exactly what they sound like: simple and conventional. Designed for borrowers with solid credit history and the ability to put at least 5% down, conventional loans can be helpful for those purchasing or refinancing a home.

Borrowers with a solid credit history will be the best candidates for conventional loans. While the minimum credit score to qualify for a conventional loan is 620, typically with a credit score of at least 720 is needed for this type of loan to make sense. Traditionally, no more than 28% of a borrower’s gross income should be spent on their mortgage, and no more than 36% on all monthly expenses combined. For a borrower with ‘compensating factors’, individuals whose debt reaches 45% of their gross income can be considered. A loan specialist can help calculate these numbers to make sure you qualify. At least 5% of the down payment must come from the actual borrower, and any additional can be a gift from family. However, if a borrower is putting 20% or more down on a home, the whole down payment can come from a gift. Most every single-family home, condo, planned urban development, or townhouse can be financed with a conventional loan.

Starting the home buying process with a large down payment is a great first step in the home buying process. For those with a strong enough credit history, they may offer the lowest payments and fees. Conventional loans also offer the best insurance options for a mortgage, leading to lower monthly payments.

Call or email Oceanside Mortgage Company today to see if you qualify for a conventional loan. To help us help you, please have the following documents handy when you’re ready to process a loan. These include your driver’s license, the last 2 years of W-2 forms, 30 day’s worth of pay stubs, 2 months of recent bank statements, and your homeowners insurance page or agent’s contact information.

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Address 55 Main St. Toms River, NJ 08753

Oceanside Mortgage Company is a private corporation. Oceanside Mortgage Company is not acting on behalf or at the direction of HUD/FHA/VA/USDA or the Federal Government. By refinancing your existing loan, your total finance charges may be higher over the life of the loan. NMLS# 80015 Visit the Nationwide Mortgage Licensing System & Registry consumer access website for licensing information: www.nmlsconsumeraccess.org Website authorization by the New York State Department of Financial Services is pending. Until this website is authorized, no mortgage loan applications for properties located in New York will be accepted through this site

Andy Tran

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