Conventional Loan

Traditional Mortgage Solutions for Colorado Homes

5280Lend.com works with Denver area clients to secure conventional home loans. Our expert team has the knowledge and experience to guide you through your mortgage loan process.

As Colorado mortgage loan experts, we’ll thoroughly analyze your situation to determine the best type of mortgage and loan term to fit your budget and needs. We offer personalized service for homebuyers in the Denver Metro area.

What Is A Conventional Loan?

Unlike FHA and VA loans, the federal government does not directly insure conventional loans. Most conventional loans are conforming loans which means they meet Fannie Mae and Freddie Mac lending standards.

Conventional loans have different qualifying criteria and often work well for many different types of homebuyers. Conventional loans may require Private Mortgage Insurance (PMI) depending on the down payment amount.

These home loans are ideal for homebuyers with a wider range of down payment amounts and stable credit history.

Most home loans in the United States are conventional loans. We work with homebuyers to meet the standards and requirements for traditional home mortgages.

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How Conventional Mortgages Work

A traditional mortgage is a debt that you take out against your property. The lender will lend you money based on the house’s value. Then, you repay the loan over time using monthly payments.

The bank determines the interest rate on a mortgage using the current market conditions and your credit history. Conventional mortgages typically carry 15-to-30-year loan repayment periods. The monthly payments are calculated based on the principal amount, interest rates, and the repayment period.

At 5280Lend.com, we work with borrowers to achieve favorable terms, including monthly mortgage payments, loan limits, closing costs, and rate options.

An FHA loan gives homebuyers an alternative to a conventional home loan. The Federal Housing Administration (FHA) insures FHA loans to support borrowers who do not qualify for a traditional mortgage.

FHA loans are a good option for many first-time homebuyers. The government-backed mortgage program requires a smaller down payment and a lower credit score than many other loan programs.

Advantages of Conventional Loans

Flexible Options

Unlike many government-backed loans, conventional mortgages offer more options for borrowers. Many different options exist for PMI payments if that requirement is applicable. You can finance investment properties and second homes with conventional mortgages.

Lower Down Payment Requirements

Conventional loans allow homebuyers to put less than 20% down on their homes. However, most borrowers will face a PMI requirement for a lower down payment. The advantage is achieving homeownership sooner.

Smoother Underwriting Process

Conventional loans typically require less paperwork than government-backed loans. Plus, the process moves quicker because of fewer requirements, like the FHA/VA appraisal inspection requirements.

More Accessible

Government-backed loans carry specific requirements for those who may participate. For example, VA loans apply to borrowers meeting military service requirements.

Conventional loans offer homebuyers the opportunity to finance their home with very flexible options. The experts at 5280Lend.com understand the process and requirements to make your mortgage process smoother. Contact us today!

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What Are the Requirements for A Conventional Mortgage?

A credit score of at least 620 for most borrowers.
A debt-to-income (DTI) ratio that will sufficiently support the mortgage payment and any other debts the borrower might have.
A loan amount lower than the maximum amount set annually by Fannie Mae and Freddie Mac (https://singlefamily.fanniemae.com/originating-underwriting/loan-limits).

Some borrowers may qualify for a down payment of 3%. However, the down payment requirements change depending on the situation. For example, a conventional loan for an investment property or a second home requires a higher down payment.
For a down payment of less than 20%, most borrowers must pay PMI.
Having other assets like savings accounts, retirement accounts, or other financial assets can also be factors in underwriting your loan.

We work with each client to determine the details of the loan program, including payment options and the term of your loan repayment. Contact us to schedule a FREE mortgage assessment.

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Why Work with a Mortgage Bank for A Conventional Loan?

Working with a mortgage bank can give you peace of mind during the stress of buying a home. Our team of experienced professionals will guide you through every step, helping you find the right financing option for your situation.

Whether you’re buying or refinancing, our goal is to make the entire experience easy and stress-free. Each month, we only work with a limited number of clients to ensure you receive personalized service. Also, we are a local Colorado lender, meaning we understand Colorado loan laws and requirements.

Start today with a FREE mortgage assessment.

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