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Conventional Loans | Privately Held and Beneficial for All Home buyers

If you are in search of a loan that is insured directly through a private lender, then Rocky Mountain Mortgage Company has the right program for you! Our mortgage lenders have been able to assist homebuyers with signing up for conventional mortgage loan. These specialized loans are known for having rather strict guidelines, but Rocky Mountain Mortgage Company can provide you with the one-on-one financial support you need. 

How a Conventional Mortgage Loan Works

You start the application process by applying for preapproval. If you are preapproved for the loan, you can then begin the formal loan application. This formal application includes detailed questions about the type of loan, the property being purchased, and your personal finances. Once the application is received, the lender will order a title report on the property and schedule an appraisal. The application is then sent to underwriting, which is necessary for conventional loans where the underwriters will closely assess and examine information to determine the risk of lending the homebuyers money. Once these steps have been completed, you will be informed as to whether your conventional loan has been approved or denied.

 

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We have helped more than 20,000 El Paso families realize their dream of HOMEOWNERSHIP.

Get a FREE, No Obligation Consultation
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We have helped more than 20,000 El Paso families realize their dream of HOME OWNERSHIP.

Special Considerations to Qualify for a Conventional Home Loan

Homebuyers with established and stellar credit reports who are on a solid financial footing are most likely to qualify for conventional mortgages. More specifically, the ideal candidate should have:

  • A credit score between 640 and Above 

    The higher that your credit score is, the lower you can expect your interest rate to be. 

  • An acceptable debt-to-income ratio

    The debt-to-income ratio is the sum of your monthly obligations compared to your monthly income. 

  • A down payment of at least 5%

    Lenders are able to lessen the down payment, but if they do they often require borrowers to take out private mortgage insurance, which is a monthly premium that is paid until they achieve a minimum principal balance of 20% of the original appraised value.

Conventional loans are optimal for homebuyers who want a home for investment purposes, as a second home, or want to purchase a property with a maximum amount of $510,400.

The Different Types of Conventional Mortgage Loans

There are two common types of conventional loans that Rocky Mountain Mortgage Company can help homebuyers apply for:

  • Conforming Conventional Mortgage Loans

    In order to be considered for a conforming loan, one must be able to meet the guidelines set by the Fannie Mae and Freddie Mac programs. These programs establish baseline loan limits as one of their ground rules.

  • Non-Conforming Conventional Mortgage Loans

    Conventional loans that exceed the limit of conforming loans are non-conforming. These loans are not purchased by Fannie Mae or Freddie Mac because they do not meet the loan requirements. Instead, non-conforming loans are funded by other lenders or private institutions.

Choose Rocky Mountain Mortgage Company to Apply for a Loan That Suits You

Rocky Mountain Mortgage Company encourages applying for a conventional home loan as they are accompanied by low-interest rates, fast loan processing, diverse down payment options, flexible term lengths, and reduced private mortgage insurance costs. Contact Rocky Mountain Mortgage Company to learn more about how our lenders can help you apply and determine if you qualify for a conventional home loan.

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Texas Mortgage Banker Consumer Disclosure: PURSUANT TO THE REQUIREMENTS OF SECTION 157.007 OF THE MORTGAGE BANKER REGISTRATION AND RESIDENTIAL MORTGAGE LOAN ORIGINATOR ACT, CHAPTER 157, TEXAS FINANCE CODE, YOU ARE HEREBY NOTIFIED OF THE FOLLOWING: CONSUMERS WISHING TO FILE A COMPLAINT AGAINST A MORTGAGE BANKER OR A LICENSED MORTGAGE BANKER RESIDENTIAL MORTGAGE LOAN ORIGINATOR SHOULD COMPLETE, SIGN AND SEND A COMPLAINT FORM TO THE TEXAS DEPARTMENT OF SAVINGS AND MORTGAGE LENDING, 2601 NORTH LAMAR, SUITE 201, AUSTIN, TEXAS 78705. COMPLAINT FORMS AND INSTRUCTIONS MAY BE DOWNLOADED AND PRINTED FROM THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV. A TOLL-FREE CONSUMER HOTLINE IS AVAILABLE AT 1-877-276-5550. THE DEPARTMENT MAINTAINS A RECOVERY FUND TO MAKE PAYMENTS OF CERTAIN ACTUAL OUT OF POCKET DAMAGES SUSTAINED BY BORROWERS CAUSED BY ACTS OF LICENSED MORTGAGE BANKER RESIDENTIAL MORTGAGE LOAN ORIGINATORS. A WRITTEN APPLICATION FOR REIMBURSEMENT FROM THE RECOVERY FUND MUST BE FILED WITH AND INVESTIGATED BY THE DEPARTMENT PRIOR TO THE PAYMENT OF A CLAIM. FOR MORE INFORMATION ABOUT THE RECOVERY FUND, PLEASE CONSULT THE DEPARTMENT’S WEB SITE AT WWW.SML.TEXAS.GOV.

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