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Conventional Loans Snapshot
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Minimum down payment of 3% (first-time homebuyers) and 5% (repeat homebuyers).
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Minimum credit score of 620
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No monthly Private Mortgage Insurance (PMI) with a down payment of 20% or more.
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Available loan terms of 10, 15, 20, 25 and 30 years
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Available for primary residences, second homes, and investment properties.
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Lower rates available for those with a gross annual income below the Area Median Income.
Your Path to Affordable Homeownership
Navigating the world of home loans can be daunting, especially if you're a first-time homebuyer, real estate investor, or a small business owner looking for viable financing solutions. With AsertaLoans, based in Dallas, you can access some of the lowest conventional loan rates in Texas and Florida. Our mission is to provide a seamless, first-class experience tailored to your unique financial needs.
What Are Conventional Loans?
Conventional loans are mortgage loans not insured by the government. They often come with competitive interest rates and flexible terms, making them a popular choice among borrowers. These loans are ideal for those who have a good credit score and stable income, offering the potential for lower interest rates, lower monthly payments and no monthly PMI.
Types of Conventional Loans
Conventional loans come in various forms, each designed to cater to unique homeowner needs. At AsertaLoans, we provide guidance on each loan type, helping you select the best option based on your financial goals, property type, and preferred loan term.
Fixed-Rate Loan
A fixed-rate loan offers a consistent interest rate for the entire loan term. This type of loan is ideal for homeowners who want stable monthly payments over a set period, such as 15, 20, or 30 years. It provides financial predictability, making it easier to budget for long-term expenses without worrying about fluctuating interest rates.
Adjustable-Rate Mortgage (ARM)
An adjustable-rate mortgage (ARM) offers a lower initial interest rate that adjusts periodically after a set period, such as 5, 7, or 10 years. During the fixed-rate period, monthly payments are lower, which can be helpful if you plan to sell or refinance before the rate adjusts. ARMs are ideal for borrowers looking for short-term savings or anticipating changes in their financial situation.
Who Conventional Loans Are For?
First-Time or Repeat Homebuyers
Conventional loans offer competitive interest rates and flexible terms, which can benefit first-time buyers significantly. AsertaLoans provides expert guidance and support to ensure that you start your homeownership journey on the right foot. First time homebuyers qualify for a 3% down payment, or 5% if you owned a home within the last three years.
Real Estate Investors
For investors, conventional loans offer the advantage of financing multiple property types, including rental properties, vacation homes, and more. With AsertaLoans, you can build and diversify your portfolio with confidence.
Vacation or Second Homes
If you're looking to buy a vacation or second home, then a conventional loan is the perfect fit, with down payments as low as 10%. Enjoy low rates and low down payments for your home away from home.
Qualifying for a Conventional Mortgage
Qualifying for a conventional mortgage loan requires meeting certain criteria set by conventional lenders. Here's what you need to know:
Credit Scores and History
A 620 minimum credit score is required. And a higher score will improve your chances of securing better conventional loan rates.
Income and Debt-to-Income Ratio
Lenders will assess your monthly income and calculate your debt-to-income ratio (DTI) to ensure you can comfortably manage your monthly mortgage payments. A DTI of 50% or lower is generally required.
Down Payment
Conventional loans have a 3% minimum down payment for first-time homebuyers and 5% if you owned a home within the last three years. A down payment of 20% or more will help you avoid private mortgage insurance (PMI).
Employment and Income Verification
24 months of employment history is required for a conventional mortgage (unless you were in school). Lenders will review your pay stubs, W2s or tax returns to verify your employment and income.
Property Requirements
The type of property you're purchasing also affects your eligibility. Conventional loans are available for single-family homes, townhomes, condos, and manufactured/mobile homes.
Why Choose AsertaLoans for Your Conventional Loan?
At AsertaLoans, we pride ourselves on offering some of the lowest-rate home loans, helping you save thousands over the life of your mortgage and keeping more money in your pocket. We understand that every client’s financial situation is unique, so we provide personalized lending solutions tailored to your needs.
Whether you’re a first-time buyer, expanding your real estate portfolio, or seeking a mortgage for business premises, our team is dedicated to finding the best fit for you. Our seasoned professionals deliver top-tier service and guidance with extensive market expertise, leveraging deep knowledge of the Texas and Florida real estate markets to provide valuable insights that benefit you in the long run.
Reach Out to AsertaLoans – Your Trusted Partner for Conventional Loans
Ready to take the next step in your home buying or investing journey? Our team of experts is here to provide personalized, first-class service tailored to your unique needs. Let's make your financial goals achievable together. Experience the difference with AsertaLoans, and discover how easy home financing can be with the right partner by your side. Join our community of satisfied clients in Texas and Florida and unlock the door to your new home or investment opportunity today!