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Waco Conventional Home Loans

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Waco Conventional Mortgage Lender

Waco Conventional Home Loans

A conventional mortgage loan is your best bet if you want to save the most money on your home loan. But before you start looking for a conventional mortgage lender in Waco, you must understand how the loan works and what it entails, as well as the different types of conventional home loan products available to you. 

What is a Conventional Loan?

Conventional loans are mortgages that are not backed by government agencies such as the Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA). Homebuyers eligible for conventional loans should strongly consider this type of loan, as it will likely offer less expensive borrowing options.

Conventional loans are offered, backed, and serviced by private mortgage lenders like banks, credit unions, and other financial institutions. They are classified into conforming or non-conforming loans, depending on whether or not they follow the rules set by Fannie Mae and Freddie Mac – government-sponsored enterprises that own a lot of mortgages in the U.S.

The Benefits of a Conventional Loan

There isn’t one perfect mortgage loan for everyone, so it’s essential to know the pros and cons of the loan options available to you before making a decision.

Conventional loans account for more than 78.5% of new home sales in the United States today. These are the top three reasons why:

  • Lower mortgage costs 

A high credit score can qualify you for a conventional loan with great rates and low fees. And once your loan-to-value ratio reaches 80%, you can ask to remove the insurance requirement. If you pay 20% of the home’s purchase price upfront, however, you won’t have to pay mortgage insurance. 

In contrast, the mortgage insurance premium for an FHA loan and the guarantee fee for a USDA loan can stay the same over the life of the loan.

  • Higher loan limits 

Conforming loans have limits, but you can always go for a jumbo loan if you want to purchase a home that exceeds the conforming loan limits in your area. Government-guaranteed loans won’t afford you that kind of leeway.

  • More flexibility 

Conventional loans offer more wiggle room than government-insured loans because they don’t have to adhere to the guidelines set by the government. Moreover, while government-guaranteed loans are only for purchasing primary homes, conventional loans can finance single-family and multi-family homes, second homes, and investment properties. 

The Downsides of a Conventional Loan

There are advantages to getting a conventional loan over a government-backed loan, but there are also some drawbacks to think about:

  • Higher credit score requirements 

A conforming conventional loan usually requires a credit score of at least 620, which is higher than most government-backed loans. You can qualify for an FHA loan with a credit score of 500.

  • Higher down payment requirements 

Some conventional loan programs let first-time homebuyers put down as little as 3% or even nothing but expect to pay 5% after that. On the other hand, FHA loans need a minimum down payment of 3.5%, while USDA and VA loans don’t need any down payment.

  • More stringent qualification process 

Government-insured mortgage loans pose less risk to lenders. You may find it easier to qualify for one if you meet all requirements. Private lenders take the brunt of the blow if a borrower defaults on a conventional loan. Because of the higher risk involved, the origination process may involve a more cautious examination of your financial situation.

Get Pre-approved for Waco Conventional Loan Today!

Borrowers with stellar credit and a down payment of 10% or more should strongly consider getting a conventional loan. You can expect lower interest rates and more advantages with a high credit score. If your credit is barely good, you may want to look into other mortgage products. You may find the FHA loan more favorable. 

Get pre-approved with Capital Home Mortgage today to gauge your chances of getting approved for a conventional loan in Waco!

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Control of the Loan from the Application to Funding.

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7  Day a Week Support from Application to Final Mortgage Payment. 

Waco Mortgage Rates

Have you ever wondered why interests rates are what they are and what determines the final rate?  Why borrowers receive different interest rates? Or why rates go up and down?  Interest Rates are calculated using several factors.

  • Demand for the mortgage Securities
  • Property securing the mortgage
  • occupancy of the property
  • Loan to value of the property
  • Borrower’s credit worthiness

Waco Conventional Purchase Loan

Conventional Purchase Loans are one of the most popular types of loans and a great choice for many home buyers. Conventional mortgages can be used to purchase any type of occupancy, while FHA, USDA, VA and Native American Loans are restricted to primary residence only. Conventional mortgages are great for borrowers that have higher credit scores and typically have easier qualifying.  

Conventional Mortgage Benefits

  • Freddie Mac and Fannie Mae Insured
  • Primary, Second or Investment Property
  • Single and Multi Family, Condo’s & Manufactured Homes
  • Mortgage Insurance Options
  • Lower Rates and Better Terms
  • Maximum Loan Amount – $715,000
  • Conforming High Balance – By Area

Conventional Mortgage Maximum Loan to Values

Primary Residence

  • Single Family – 95% First Time 97% 
  • Duplex – 85%
  • Tri / 4 Plex – 80%
  •  

Secondary Residence

  • Single Family – 90%
  • Duplex – N/A
  • Tri / 4 Plex – N/A
  •  

Investment Residence

  • Single Family – 85%
  • Duplex – 75%
  • Tri / 4 Plex – 75%

Home Purchase
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Conventional Refinance Lender

Conventional Purchase Loans are one of the most popular types of loans and a great choice for many home buyers. Conventional mortgages can be used to purchase any type of occupancy, while FHA, USDA, VA and Native American Loans are restricted to primary residence only. Conventional mortgages are great for borrowers that have higher credit scores and typically have easier qualifying.  

Conventional Mortgage Benefits

  • Freddie Mac and Fannie Mae Insured
  • Primary, Second or Investment Property
  • Single and Multi Family, Condo’s & Manufactured Homes
  • Mortgage Insurance Options
  • Lower Rates and Better Terms
  • Maximum Loan Amount – $715,000
  • Conforming High Balance – By Area

Conventional Mortgage Maximum Loan to Values

Primary Residence

  • Single Family – 95% First Time 97% 
  • Duplex – 85%
  • Tri / 4 Plex – 80%
  •  

Secondary Residence

  • Single Family – 90%
  • Duplex – N/A
  • Tri / 4 Plex – N/A
  •  

Investment Residence

  • Single Family – 85%
  • Duplex – 75%
  • Tri / 4 Plex – 75%

Waco Conventional Refinance Loan

Conventional Highlights

Conventional Refinance Loans are used for more refinances than any other type of mortgage loan.   This is due to Conventional loans allowing for all occupancy and property types and typically don’t require any mortgage insurance due to loan to value requirements. Conventional mortgages due require higher credit scores but offer better rates.  

  • Freddie Mac and Fannie Mae Insured
  • Primary, Second or Investment Property
  • Single, Multi-Family, Condo’s & Manufactured Homes
  • Rate and Term

Primary Residence

  • Single Family – 95% 
  • Duplex – 85%
  • Tri / 4 Plex – 80%

Secondary Residence

  • Single Family – 90% 
  • Duplex – N/A
  • Tri / 4 Plex – N/A

Investment Residence

  • Single Family – 85% 
  • Duplex – 75%
  • Tri / 4 Plex – 75%

Cash Out Refinance

Primary Residence

  • Single Family – 80% 
  • Duplex – 75%
  • Tri / 4 Plex – 75%

Secondary Residence

  • Single Family – 75% 
  • Duplex – N/A
  • Tri / 4 Plex – N/A

Investment Residence

  • Single Family – 75% 
  • Duplex – 70%
  • Tri / 4 Plex – 70%
Mortgage Conventional Refinance Lender

Conventional Highlights

Conventional Refinance Loans are used for more refinances than any other type of mortgage loan.   This is due to Conventional loans allowing for all occupancy and property types and typically don’t require any mortgage insurance due to loan to value requirements. Conventional mortgages due require higher credit scores but offer better rates.  

  • Freddie Mac and Fannie Mae Insured
  • Primary, Second or Investment Property
  • Single, Multi-Family, Condo’s & Manufactured Homes
  • Rate and Term

Primary Residence

  • Single Family – 95% 
  • Duplex – 85%
  • Tri / 4 Plex – 80%

Secondary Residence

  • Single Family – 90% 
  • Duplex – N/A
  • Tri / 4 Plex – N/A

Investment Residence

  • Single Family – 85% 
  • Duplex – 75%
  • Tri / 4 Plex – 75%

Cash Out Refinance

Primary Residence

  • Single Family – 80% 
  • Duplex – 75%
  • Tri / 4 Plex – 75%

Secondary Residence

  • Single Family – 75% 
  • Duplex – N/A
  • Tri / 4 Plex – N/A

Investment Residence

  • Single Family – 75% 
  • Duplex – 70%
  • Tri / 4 Plex – 70%

Waco Conventional Renovation Loan

  • Up to 97% LTV of “As-Completed”
  • Owner-occupied 1–4 unit Primary 
  • Owner-occupied 1–4 unit Condos 
  • 85% LTV on a 1-unit Investment 
  • 90% on a 1-unit Second Home
  • Credit Scores Down to 620
  • Luxury Renovations are Eligible
Renovation Freddie Mac Choice Home Lender
  • Up to 97% LTV of “As-Completed”
  • Owner-occupied 1–4 unit Primary 
  • Owner-occupied 1–4 unit Condos 
  • 85% LTV on a 1-unit Investment 
  • 90% on a 1-unit Second Home
  • Credit Scores Down to 620
  • Luxury Renovations are Eligible
Not Sure? Take a Look at Other Waco Mortgage Programs

Waco Mortgage Team

Conor Hayhurst

Manager
NMLS 743506

Damon Embler

Sr Loan Officer
NMLS 882260

chris erwin

Sr Loan Officer
NMLS 914064

Dale Gremillion

Manager
NMLS 210325

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