Traditional mortgages are simply structured, where a mortgagor borrows on a fixed or variable interest rate, making payments until the loan is completely paid off. They offer borrowers predictability, so there are no surprises in terms of the amount of the monthly payment or when the loan ends.
Simply so, how do you get a traditional mortgage?
Conventional loan credit score requirements
To qualify for a conventional loan, you’ll typically need a credit score of at least 620. Borrowers with credit scores of 740 or higher can make lower down payments and tend to get the most attractive conventional loan rates, however.
Additionally, what condition does a home need to be in for a conventional loan?
Fannie Mae’s rules for conventional, conforming loans state the home must be: A single-family dwelling or multifamily dwelling with no more than four units. After your down payment, can be purchased using a loan amount within current conforming loan limits.
What are non-traditional mortgages?
Nontraditional mortgage products typically allow borrowers to defer payments of principal and, sometimes, interest. Among the more popular nontraditional products are interest-only and payment option adjustable-rate mortgages (ARMs).
5 Things You Need to Be Pre-approved for a Mortgage
- Proof of Income.
- Proof of Assets.
- Good Credit.
- Employment Verification.
- Other Documentation.