Conventional Mortgage Loans - DNJ Gateway Bank Mortgage

Conventional Loans: The Standard Mortgage

If you are looking for a standard mortgage, with no special programs or government entities attached to it, then conventional loans are for you!

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How Does a Conventional Loan Work?

A conventional loan has a maximum borrowing amount of $417,000. Conventional loans are available with either fixed or adjustable interest rates, as well as a variety of repayment lengths (30, 20, 15 and 10 year) to fit your goals. These loans may be eligible for purchase by Freddie Mac and Fannie Mae, and they are not backed by government entities (USDA, VA, FHA).
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Do Conventional Loans Have Limitations?

Because conventional loans are bought by Fannie Mae and Freddie Mac, these loans must conform to standards that have been set. Your debt-to-income ratio must not exceed 45%, and you must have a credit score of at least 640, although a credit score of at least 660 is recommended. You will also need to put at least 5% down on the house. The easiest way to know if you qualify for a conventional loan is to ask! At DNJ Gateway Bank Mortgage, we’re happy to analyze your ratios and let you know if a conventional mortgage will be a good fit for you.
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Are There Any Fees Associated With a Conventional Loan?

Yes – if your down payment is less than 20% of the home’s purchase price, you will be required to have private mortgage insurance (PMI), which ranges from 0.4%-1.2% of the loan amount and is paid monthly.

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Call DNJ Gateway Bank Mortgage to Learn More About Conventional Loans

To discuss conventional loans with one of our knowledgeable loan officers, contact DNJ Mortgage today! We’ve earned the trust of homeowners in the Triangle, the Triad the Outer Banks, Western North Carolina, Virginia Beach, Rehoboth Beach, the Eastern Shore of Maryland, the Eastern Shore of Virginia, and more – Let us earn yours! DNJ also offers mortgages in Tennessee, South Carolina, Georgia, Texas, and Florida. Call today!