Conventional Loans

Conventional Loan Program

A conventional home loan is a loan that is available through a private lender such as a bank, credit company, or mortgage company. Instead of being offered and secured by a government entity. In some cases, some conventional home loans can be guaranteed by two government-sponsored enterprises; the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. Also known as Fannie Mae and Freddie Mac.

Some of the benefits of the Conventional Loan Program are:

Low Interest Rates

Higher Loan Limits

Flexibility with Down Payment Options and Loan Term Lengths

What Type of Documents You Will Need to Provide

Proof of Income

This will include the following, but is not limited too

  • 30 days of pay stubs that show income as well as year-to-date income
  • 2 years of federal tax returns
  • 60 days or a quarterly statement of all asset accounts, including your checking, savings, and any investment accounts
  • Two years of W-2 statements

Assets

Bank statements and investment account statements will be needed to prove you have the necessary funds for the down payment as well as the closing costs. If you recieve any money from a friend or family member to assit with the down payment you will need a gift letter to certify that it is not a loan and does not require repayment. These letters often need to be notarized.

Employment Verification

You will need to provide proof of a stable work history. This may be done through pay stubs and or verifying with the employeer directly. If you are self-employeed you will need to provide significant additional paperwork concerning your business and income. 

Other Documentation

You will also need to provide additional documentation. Including drivers licence or state ID, social security number, as well as your signature.