Why Choose A Conventional Loan For Your Home Purchase Or Refinance In Midvale, Utah
Low Down Payment Requirements
Higher Loan Amounts
Diverse Property Types
What Other Home Owners Are Saying
Midvale, Utah Conventional Home Loan FAQs
Find answers to your conventional loan frequently asked questions.
What are the benefits of conventional home loans?
Conventional home loans offer a number of benefits to Midvale residents. For starters, conventional loans are not part of any government program, is the most common type of mortgage loan and are widely available from a variety of lenders. On average, around 80% of home buyers and home owners use a conventional home loan to buy or refinance a home. Additionally, conventional home loans only require a 3% down payment. This can make them an attractive option for first-time homebuyers or those with limited savings. Conventional loans don’t have an upfront mortgage insurance premium or a funding fee like government-backed loan programs. Finally, mortgage insurance is only required when putting down less than 20% or has less than 20% equity in their property.
A conventional loan can be used to buy or refinance a primary residence, second home or investment property in Midvale, Utah.
What are the conventional home loan requirements?
Conventional home loans in Midvale require that borrowers meet basic qualification requirements for credit, debt ratios and money down or available equity. Credit score minimums are a 620 FICO score with no bankruptcy, foreclosure or short sale within the past seven years. Debt-to-income (DTI) ratio limits are capped at 45%, but in some cases can be extended to 49.99% with excellent credit and/or a sizable down payment. Debt ratios are calculated by totaling your monthly credit obligation and dividing them by the gross monthly income.
Borrowers who are paid salary, a wage or are self-employed can qualify for this type of loan. For borrowers with large assets, trust income or other reliable income source(s) may also qualify.
What Property Types Are Allowed With Conventional Home Loans?
Midvale offers an assortment of property types and conventional home loans can be used to purchase or refinance most properties. Some of the most common property types that can be purchased with a conventional loan include:
- Single-family homes
- Townhouses and duplexes
- Multi-unit properties (up to four units)
What is the process of getting a conventional home loan Midvale, UT?
The process of getting a conventional home loan starts with getting preapproved from a loan officer. You’ll need to provide income documentation and possibly bank statements. The lender will also need to run a credit check.
Once you’ve been preapproved for your home loan, it normally takes 30 days or less to close. You can estimate monthly mortgage payments here.
What Are The Conventional Loan Limits in Midvale?
Midvale is located in Salt Lake County and is subject to the loan limits set by the Federal Housing Finance Agency. The conforming loan limit 2024 is $766,550 for a single-unit property. This is also often called the conventional loan limit. Conforming loan limits also exist for two to four-unit properties.
For conforming loan limits greater than $766,550, the loan is considered a Jumbo loan. Jumbo loans are also available for home purchases or refinances.
How To Choose A Midvale, Utah Mortgage Lender
When looking for a lender to help with financing a home, it’s important to find someone who is local and specializes in conventional home loans Midvale, UT. Compare your options by finding a loan officer that:
- Possesses knowledge of the home-buying process and loan program guidelines
- Has a network of other real estate professionals
- Demonstrates working with similar clients
- Offers competitive interest rates
- Can show exceptional reviews and testimonials from clients
Many mortgage lenders claim to specialize in conventional loans. However, they typically hire loan officers with little to no experience. The lender doesn’t underwrite the loans themselves, have extended closing times up to 45 days, make you work with a team instead of a single person and don’t respond to your inquiries during the process. Plus, you typically end up with a higher interest rate.
Choosing the right lender for conventional home loans Midvale UT could save you thousands of dollars and ensure a positive home buying or refinance experience.
About Midvale, UT
Midvale, Utah is located in the Salt Lake Valley and has been an important city for many years. It is home to two TRAX lines, making it easily accessible from all around the valley. The city offers a variety of activities and amenities for its residents including parks, trails, shopping venues and much more. Midvale was established in the 1850s and has since grown due to its central location in the valley, as well as its connection to mining in Bingham Canyon. The city is a mix of residential and commercial areas, providing a great balance of activities for locals and visitors alike. Midvale is the perfect place to call home for those looking for easy access to all that Salt Lake County has to offer.