Bank of England Mortgage MidSouth - Fixed Rate Mortgages

Conventional Mortgages

Most simply stated, a conventional loan means a homebuyer’s mortgage is not backed or insured by a government agency such as the Federal Housing Administration (FHA) or Veterans Administration (VA). Buyers can use a conventional mortgage to purchase a one- to four-unit home, a condominium, modular or manufactured home as a primary, secondary or investment property.

Down payments for a conventional purchase loan can be as little as 3% for qualified buyers. However, generally the borrowers for a Conventional loan have a down payment between 5% to 20% percent of a home’s purchase price. On a refinance, a conventional loan can have a loan-to-value (LTV) ratio as high as 95% with the addition of private mortgage insurance (PMI) or lender paid mortgage insurance (LPMI).

On a conventional loan, we will consider a buyer’s debt-to-income (DTI) ratio, which is determined by calculating the projected housing costs and actual recurring monthly expenses. A buyer’s home expenses include: monthly loan payment applied toward principal and interest, property taxes, mortgage and homeowners insurance in addition to all monthly expenditures.

A FICO credit score of 640 and higher increases a borrower’s rate of approval and may reduce the loan’s interest rate.

Borrowers who have filed a Chapter 7 bankruptcy case can apply for a conventional mortgage after four years from discharge date, and those who have filed a Chapter 13 may apply two years after the re-establishment of an active credit profile.

The current market and the borrower’s FICO credit score influence the interest rate he’ll receive on a conventional loan. Conventional loan programs at a fixed rate, where the interest rate stays consistently the same throughout the term of the loan, or as an ARM, an adjustable-rate mortgage, where interest rates initiate at a below-market rate and change on a designated schedule, which ranges from monthly to annually or longer.

Conforming conventional loans have a maximum loan limit set by Fannie Mae at the county level. In the case of non-conforming loans, banks generally set the limit at 80 to 90 percent of the home’s appraised value.

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Our goal is to exceed your expectations. The combination of our excellent staff, superior operations, and devotion to customer service, means one thing to all of us at Bank of England Mortgage Midwest: We will not stop until we have exceeded our client's expectations. We look forward to that opportunity. If you have any questions, call (913) 210-8514 or toll-free at (844) 258-1128.