A conventional loan is any mortgage that is not guaranteed or insured by the federal government. A conventional loan is the ideal loan for borrowers with excellent credit and funds for a down payment.
Conventional mortgage guidelines allow you to purchase condos, planned unit developments, modular homes, manufactured homes, and 1-4 family residences. Conventional loans can also be used to finance primary residences, second homes and investment properties.
A conventional loan that follows certain loan amount limits is considered a conforming loan. Listed below are the current conforming loan limits - these lending limits apply to conventional loans for 1-4 unit residential homes and condos and may mean reduced rates and easier documentation requirements!
|County||One Unit||Two Units||Three Units||Four Units|
|Beaver, Cache, Carbon, Daggett, Duchesne, Emery, Garfield,
Grand, Iron, Juab, Kane, Millard, Piute, Rich, San Juan, Sanpete,
Sevier, Uintah, Utah, Washington, Wayne
|Salt Lake, Tooele||$600,300||$768,500||$928,950||$1,154,450|
|Box Elder, Davis, Morgan, Weber||$646,300||$827,400||$1,000,100||$1,242,900|
What is the minimum credit score required for a conventional loan?
Generally, at least a 620 credit score is required for a conventional loan.
How much money does a conventional loan require for a down payment?
Conventional home mortgage loans typically require the borrower to have at least 5% of the sales price in cash for the down payment. If a buyer can put down at least 20% of the sales price, they will be able to avoid mortgage insurance.
What information is needed from the applicant to start the process for a conventional mortgage loan?
For more information about a conventional loan - and other loan options - give us a call at 801-409-5000 or find a loan officer.