Conventional Loans

 

Conventional Home Loans in Washington State, including Seattle, Bellevue, Issaquah, Sammamish and the surrounding areas.

Conventional loans are mortgage loans offered by non-government sponsored lenders. A conventional, or conforming, mortgage adheres to the guidelines set by Fannie Mae and Freddie Mac. It may have either a fixed or adjustable rate.

While many think that a 20% down payment is required for all conventional loans, many lenders now offer low down payment options.

Cascade Equity Group, Inc. offers several different types of conventional home loan programs in Washington State, including Seattle, Bellevue, Issaquah and Sammamish to help prospective home-buyers achieve their goal. How will a convention loan help you attain your financial goal and even improve your family’s quality of life? Learn more about our conventional home loan programs.

Definition of a Conventional Loan

Conventional home loans provide homebuyers the opportunity for a lower cost mortgage. One of the benefits of conventional home loans is NO monthly mortgage insurance payment for borrowers that can put 20% as a down payment.

Seattle, Bellevue, Issaquah and Washington state conventional home loans are mostly secured by Fannie Mae or Freddie Mac.

Who is Eligible for a conventional loan?

Conventional loans have general guidelines and standards. For you to qualify for conventional loan, you’ll have to show a 2 year financial and residential profile to the lender to show you have the ability to repay the mortgage.

Good credit

In most cases, a credit score of 620 or higher is required, though it also depends on the transaction. The FICO requirement may vary from one lender to another.

Proof of Income

You will have to provide proof of income to show the lender the ability to repay the mortgage. For self-employed individuals, they will need to provide two years of tax returns.

Wage earners will provide W2’s and Pay-stubs.

Minimum 3% down-payment

Currently 3% is the minimum down payment for a conventional loan in Washington State, including Seattle, Bellevue, Issaquah, Sammamish and the surrounding areas.

To eliminate the need for mortgage insurance, a minimum 20% down payment is required

Debt-To-Income 

Minimum-debt-to-income ratio of 45%; there could exceptions based on your financial standing. In some limited cases, it could go up to 50%.

Cash Reserves

In most cases, it is required that you have at least two months cash reserves after closing is done.

Cascade Equity Group has the reputation for focusing  every customers unique needs. Whether you’re seeking to refinance your existing mortgage or you’re a first-time home buyer that is interested in a conventional home loan, our Loan Officers are ready to help through every step of the conventional loan mortgage process.