Frequently Asked Questions
The two loans differ greatly when it comes to minimum requirements in these areas, down payment and credit score.
FHA loans have a minimum down payment of 3.5% for borrowers with credit scores of 580 or higher. Some conventional mortgages allow a 3% minimum down payment, but it’s reserved for borrowers with credit scores in the high 600s and ample savings.
FHA loans are easier to qualify for, with a minimum credit score of 580 to be eligible to make a 3.5% down payment. If your credit score is 500 to 579, you may qualify for an FHA loan with a 10% down payment.
Conventional loans typically require a credit score of 620 or higher, says Joe Parsons, a senior loan officer with PFS Funding in Dublin, California. He adds that a lower credit score often comes with a higher interest rate for a conventional loan.
My job is to present all available loan options to you and educate you on which is best suited for your needs. Each individual has specific needs and I will ensure that the best option is chosen.
Step 1: Get your credit in check
Step 2: Get pre approved for a mortgage
Step 3: Choose the right mortgage loan
Step 4: Find the right lender (Me)
Step 5: Submit your application
Step 6: Begin the underwriting process
Step 7: Prepare for closing
Step 8: Close on home
A jumbo loan, or jumbo mortgage, is a home loan for an amount that exceeds the “conforming loan limit” set on mortgages eligible for purchase by Fannie Mae and Freddie Mac. For 2020 this limit is $510,400.
Jumbo loans typically come with strict credit requirements and an even more rigorous review of applicant finances than conventional mortgages.
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Please reach out for any mortgage questions including applying, rate quotes and payment quotes.