Fewer restrictions compared with government-back loans, such as no military affiliation (VA) or rural area (USDA) required, and no income limits.
No upfront mortgage insurance required
Private Mortgage Insurance (PMI) can be canceled after 20 percent equity is achieved
Higher credit scores substantially decrease the PMI monthly cost if putting down less than 20% down payment
Less strict appraisal and property requirements than FHA, VA or USDA loans, especially for Condominium purchases
Term lengths can vary between 10 and 30 years
Important things to know:
Debt to income must be under 43%, but can be higher if mitigating factors exist like strong credit score, asset reserves, and strong credit history.
While you CAN qualify with a credit score as low as 620, unless you are getting a 15 year term and investing at least a 20% down payment it will make more sense to use another loan product like FHA. Typically it’s best to keep a minimum conventional credit score at 680 or higher if doing a 16+ term loan with less than 20 percent down.
Two years of work history (does not have be consecutive years, and can be multiple employers.
