A Conventional Home Loan can be either a Conforming Mortgage ($417,000 or less) or a Jumbo Mortgage (over $417,000). There is also a Conforming Jumbo program that is priced in between the Conforming and Jumbo that has loan limits from $417,000 to $729,950 depending on where you live. This program is due to expire December 31, 2008. Conventional Home Loans are offered in many different Mortgage Programs, whether it is for purchasing a home or refinancing your existing home mortgage. These Mortgages may be on a Single Family Residence, Condominium, Townhome and 1-4 unit Investment Properties.
There are various ways to qualify for one of these home loans. The following is a list of some of the ways that a person may qualify;
- Full Documentation Home Loan - Borrower provides pay stubs, W-2's, verification of assets (funds to close)
- Limited Documentation Home Loan - Ususally the Borrower will provide 12-24 months of personal or business bank statements (if self employed) and the Lender will use anywhere from 50% - 100% of the deposits to determine the amount of your income.
- State Income Home Loan - Borrower does not have to show proof or document their income, they merely state on the Home Loan Application how much they earn.
- No Doc Home Loan (currently not available) - The Borrower does not need to provide employment information, income information or asset information.
Whether or not you can qualify for one of the above home mortgage loans depends on the amount of your down payment, the credit scores of the Borrowers and the appraisal of the collateral being purchased.
