Conventional Refinance Loan
Looking for conventional refinance loan programs? Looking to cash out, pay off debt, a refinance with no mortgage insurance, or rate and term refinance? A conventional loan is not part of a specific government loan so lender’s options can vary.
Conventional loans can be conforming or non-conforming. Fannie Mae and Freddie Mac’s lending guidelines require a minimum FICO credit score of 620. Some lenders require a higher credit score called an overlay.
Conventional Loan vs FHA Loan
Advantages of conventional over FHA loan:
- Have no mortgage insurance if the loan-to-value is 80% or under.
- Have stricter guidelines than FHA loans when it comes to credit, but allow primary residences, second home, and investment properties.
- Conventional loans do not require borrowers to pay or finance a upfront mortgage insurance premium (MIP), which is currently 1.75% percent of the loan amount.
- Conventional loan appraisal requirements are more lenient than FHA minimum property requirements.
Conventional Cash Out and Debt Consolidation
Are you overwhelmed with debt or looking to take cash out for home improvements? The annual percentage rate (APR) on credit cards, small loans, student loans, or other debt is often much higher than a mortgage interest rate.
Many American households find relief by consolidating their debt and save hundreds of dollars a month.
Refinancing with No Mortgage Insurance
Even if you tried to refinance in the past and were denied, you may be eligible to refinance due to the guidelines always changing and some lenders having tougher guidelines. You can eliminate mortgage insurance at 80% loan-to-value by refinancing.
For some lenders, where the conforming limit ends, the jumbo loan begins. Ask about our high balance conventional mortgage rates and avoid the jumbo loan rate.
Seasoning Requirements for a Cash Out
There are options with no seasoning requirements when comes to cashing out on a home that was recently purchased. There is an exception called the delayed financing exception, which allows borrowers who purchased a home within six months to cash out.