Why Choose A Conventional Loan For Your Home Purchase Or Refinance In 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
Utah Conventional Home Loan FAQs
Find answers to your conventional loan Utah frequently asked questions.
What are the benefits of conventional home loans?
Conventional home loans Utah 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?
Conventional home loans in Utah 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?
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 Utah?
The process of getting a conventional home loan in Utah 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 credit score requirements for a Utah conventional loan?
Conventional home loans in Utah require that all borrowers on a loan application have a middle credit score of at least 620. Conventional loans in Utah are priced in credit score tiers where those with higher credit scores receive lower interest rates than those with lower credit scores.
What Are The Conventional Loan Limits Utah?
The conforming loan limit 2023 in Utah is $726,200 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 $726,200, the loan is considered a Jumbo loan. Wasatch and Summit counties in Utah 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 Utah. Get answers to your questions and start your path to home ownership.
How To Choose A Mortgage Lender In Utah
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 Utah. 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 Utah could save you thousands of dollars and ensure a positive home buying or refinance experience.
Utah is a state in the Western United States. It was admitted to the Union on January 4, 1896, as the 45th state. Utah is bordered by Idaho to the north, Wyoming to the northeast, Nevada to the east, and Arizona to the south. The state has a population of about 3 million people.
Why Live in Utah
If you’re looking for a great place to live, Utah should be at the top of your list. With its incredible natural beauty, five national parks and dozens of state parks, Utah is a paradise for outdoor enthusiasts. And thanks to its thriving high-tech sector and strong economy, Utah is also a great place to do business.