If you are shopping for a home in Los Angeles, chances are good that you are in the market for a conventional loan. Conventional loans are among the most common types of prime loans. They conform to the limits set by Fannie Mae and Freddie Mac, and are not insured by the government.
Most conventional home loans have terms which range from 10-30 years. Down payments may have quite a range as well—anywhere from 3-20%. If you provide a higher down payment, you will be less of a risk, so lenders will reward you by allowing you to sign on the loan without purchasing mortgage insurance. In addition, you will find that you are able to negotiate loan terms and fees. The higher your credit score, the more flexibility you will encounter and the lower your rates will be.
Who Qualifies for Los Angeles Conventional Loans?
What are Los Angeles looking for when they go to approve conventional loan applications?
- Your credit score needs to be reasonably high. Those with low credit scores shouldn’t fret though—many opportunities are available for FHA and VA loans as well as non-prime loans.
- You need to be able to afford the down payment. While this may be as high as 20% in some cases, our network of lenders offers conventional loans with significantly lower down payments, sometimes as little as 3%.
- A good income-to-debt ratio. Your mortgage payments should not comprise more than around 30% of your total income. Also, your debts and bills each month shouldn’t add up to more than half of your income. If you have sufficient assets, you can bypass this requirement.
- The property you are trying to purchase needs to fit within the conforming limits set by Fannie Mae and Freddie Mac (if the property value exceeds these limits, consider a jumbo loan).
At Pacshores, We Can Help You Discover the Lowest Rates on Conventional Loans in Los Angeles
If you meet the requirements above, chances are good that you qualify for a conventional loan in Los Angeles with excellent terms and affordable interest rates. Our network of lenders offers exclusive discounts to our customers which you will not find advertised anywhere else. We can walk you through the application process and help you find the ideal loan for your needs. Just call us at 310-478-5005 to get started. Sooner than you think, you could be moving into a beautiful home of your own in Los Angeles.