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Coventional

Loan Program

Coventional

Terms
Coventional
  • A conventional mortgage is a type of home loan that is not insured or guaranteed by the government, unlike an FHA or VA loan.
  • Conventional mortgages typically require a down payment of at least 3% of the home’s purchase price, although some lenders may require a higher down payment.
  • Private mortgage insurance (PMI) is often required for conventional loans with a down payment of less than 20% of the purchase price. PMI protects the lender in case the borrower defaults on the loan.
  • Conventional mortgage terms usually range from 15 to 30 years, with fixed or adjustable interest rates.
  • The interest rate on a conventional mortgage is determined by a borrower’s credit score, income, debt-to-income ratio, and other factors.
  • Conventional mortgages can be used to purchase a primary residence, vacation home, or investment property.
  • Conventional loans may have more stringent credit and income requirements than government-backed loans.
  • Borrowers with a higher credit score and larger down payment may qualify for better interest rates and terms.
  • Conventional mortgages can be refinanced to obtain a lower interest rate, reduce the term of the loan, or access equity in the home.
Requirements

Down Payment:3% of the final loan amount
Credit Score: 620 minimum
Mortgage Insurance: No (if under 80% loan-to-value)
Maximum Loan: 726,200*
*Some “high balance” areas have loan limits above the standard level

  • HomeReady is a program designed to help low- to moderate-income borrowers purchase a home.
  • It requires a down payment as low as 3% of the home’s purchase price.
  • HomeReady borrowers may be eligible for reduced private mortgage insurance (PMI) costs.
  • Borrowers can use income from non-borrower household members, such as parents or siblings, to qualify for a loan.
  • HomeReady requires completion of an online homebuyer education course to help borrowers make informed decisions.
  • It offers flexible funding options, including gifts, grants, and community seconds, to help with the down payment and closing costs.
  • HomeReady borrowers may be eligible for a lower interest rate or reduced closing costs through participating lenders.
  • The program is available for both first-time and repeat homebuyers.
  • Eligible properties include 1-4 unit properties, condos, and co-ops.
  • Borrowers must meet certain income requirements based on their location and the size of their household.
  • HomeReady loans are serviced by Fannie Mae, but they can be originated by any approved lender.
  • The program encourages sustainable homeownership and promotes access to credit for underserved communities.
  • HomeReady loans can be combined with other Fannie Mae programs, such as the HomeStyle Renovation loan, for added flexibility.
  • The program allows for a maximum debt-to-income ratio of 50% and a minimum credit score of 620.

Down Payment:3% of the final loan amount
Credit Score:620 minimum
Mortgage Insurance: No, if under 80% loan-to-value
Maximum Loan Limit:726,200*
*Some “high balance” areas have loan limits above the standard level

PRMI NMLS 3094. PRMI IS AN EQUAL HOUSING LENDER. SOME PRODUCTS AND SERVICES MAY NOT BE AVAILABLE IN ALL STATES. CREDIT AND COLLATERAL ARE SUBJECT TO APPROVAL. TERMS AND CONDITIONS APPLY. PROGRAMS, RATES, TERMS AND CONDITIONS ARE SUBJECT TO CHANGE AND ARE SUBJECT TO BORROWER(S) QUALIFICATION. THIS IS NOT A COMMITMENT TO LEND. THE CONTENT IN THIS WEBSITE HAS NOT BEEN APPROVED, REVIEWED, SPONSORED OR ENDORSED BY ANY DEPARTMENT OR GOVERNMENT AGENCY. 1480 NO. 2200 WEST | SALT LAKE CITY, UT 84116