Why Choose A Conventional Loan For Your Home Purchase Or Refinance In Salt Lake 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
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
Salt Lake City Conventional Home Loan FAQs
Find answers to your conventional loan frequently asked questions.
What are the benefits of conventional home loans?
Conventional home loans Salt Lake City, UT offer a number of benefits. 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 and do not have a prepayment penalty.
What are the conventional home loan requirements?
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?
Conventional home loans can be used to purchase a variety of different property types. 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 in Salt Lake City, Utah?
The process of getting a conventional home loans in Salt Lake City 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 Salt Lake City?
The conforming loan limit 2023 in Salt Lake City 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. Some states and counties in the US also have a High Balance loan limit where housing costs are high. High Balance loans have similar guideline and qualifying requirements as a conventional home loan.
Begin Your Home Buying or Refinance Journey
Schedule a 15-minute consultation to learn more about using a conventional home loan to buy or refinance a home in Salt Lake City, Utah. Get answers to your questions and start your path to home ownership.
How To Choose A Salt Lake City, UT 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 Salt Lake City. 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
- Knows what resources are available to find the latest information
- 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 Salt Lake City UT could save you thousands of dollars and ensure a positive home buying or refinance experience.
About Salt Lake City, Utah
Salt Lake City is the capital and most populous city of the U.S. state of Utah. The city is seated at the foot of the Wasatch Mountains and lies in a valley stretching out to the Great Salt Lake. With a population of just over 190,000 residents, Salt Lake City is Utah’s largest city and metro area. It serves as headquarters for many Church of Jesus Christ of Latter-day Saints institutions including Brigham Young University (BYU).
Why Live in Salt Lake City, Utah
Salt Lake City is a great place to live if you love the outdoors. The city is located at the foot of the Wasatch Mountains, providing easy access to some of the best hiking and skiing in the country. In addition, the area provides plenty of opportunities for swimming, boating, and fishing. The city also has a thriving arts scene, with several museums and theaters worth checking out.