Why Choose A Conventional Loan For Your Home Purchase Or Refinance In Park City, Utah
Low Down Payment Requirements
Conventional home loans only require a 3% down payment or home equity. This is perfect for first-time home buyers with limited down payment funds or those looking to refinance out of higher-cost loan programs.
Conventional loans offer the largest number of loan options. Borrowers can choose from adjustable or fixed rate loans with 10, 15, 20, 25 or 30 year terms.
Higher Loan Amounts
Loan limits are adjusted each year as home prices change. These changes can make buying or refinancing a home easier to qualify for and more affordable.
Diverse Property Types
Purchase or refinance a primary residence, second home or investment property. Property types can include single-family homes, condominiums, town homes, multi-unit properties and more.
What Other Home Owners Are Saying
Park City, 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 Park City 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 Park City, Utah.
What are the conventional home loan requirements?
Conventional home loans in Park City 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?
Park City 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 Park City, 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 Park City?
Park City is located in Summit County, Utah and is considered a High-Cost County by Fannie Mae & Freddie Mac. As a result, there are special provisions for loan amounts over the standard $766,550 conforming loan limit, but below the Summit County loan limit 2023 of $1,089,300. A conventional loan between these two amounts is considered High Balance and follows many of the same guidelines as a standard conventional loan.
How To Choose A Park City, 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 Park City, 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 Park City UT could save you thousands of dollars and ensure a positive home buying or refinance experience.
About Park City, Utah
Park City, Utah is a world-famous ski resort town that attracts people from all over the world. The town is known for its luxury hotels, restaurants and shopping. But what many people don’t know is that Park City is also home to some of the best mountain biking trails in the country. The town has over 400 miles of trails, and many of them are accessible right from downtown. Park City is also home to the Sundance Film Festival, which is one of the most prestigious film festivals in the world. If you’re looking for a place to enjoy some world-class skiing or mountain biking, Park City is the perfect place for you to own a home.
Why Live in Park City, Utah
There are many reasons why someone might want to live in Park City, Utah. The town is known for its world-class skiing and mountain biking, and it also has a thriving arts scene. The Sundance Film Festival is held in Park City every year, and the town is home to many art galleries and theaters.
Park City is also one of the most affluent towns in the country, with a median household income of over $110,000. With a median home price of over $1m, most home buyers need a Jumbo loan Park City. If you’re looking for a place to enjoy some of the best outdoor recreation in the country, or if you’re looking for a luxurious lifestyle, Park City is the perfect place for you.