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Conventional Loans

Conventional loans are any loans that the government does not fund.  They are separated between conforming and non-conforming.  The conforming loans have terms and conditions, based off Fannie Mae and Freddie Mac that establish: maximum loan amount, borrower’s credit and income requirements, down payment, and suitable properties.  Credit scores required are 620 or above and the percent down payment is between 5-20%.  Non- conforming do not meet Freddie Mac and Fannie Mae requirements, but have a set of their own.  The qualifications for each are higher than what an FHA loan requires.

Pros: Conventional mortgages tend to have fewer hurdles to overcome which decreases the amount of time between closing your loan.

Cons: With conventional mortgages you have origination fees, down payments, mortgage insurance, and other out of pocket fees that you may have to deal with.  Another aspect to consider is the high credit score requirement.  The average score they look for tends to be 620 or above.

Who they are good for: Conventional loans are ideal for borrowers with excellent credit who can afford a down payment of 5% or more.

Mortgage World Bankers, Inc.
(NMLS Company ID# 7116, www.mwbankers.com) in New York holds a Mortgage Banker License (# B500764) and Mortgage Banker Branch Licenses for Astoria, NY (NMLS ID 558838), (NMLS ID 1081208) and for Flushing, NY (NMLS ID 64452) Branch Offices approved by the New York Department of Financial Services, Phone(212)709-3500; in New Jersey holds a Residential Mortgage Lender License (#9947218) and a Residential Mortgage Lender Branch License for Englewood Cliffs, NJ Branch Office (NMLS ID 336925) approved by the New Jersey Department of Banking and Insurance, Phone: (609)292-7272; in Connecticut holds a Mortgage Lender License (# 12674) approved by the Connecticut Department of Banking, Phone: (860)240-8140; in Florida holds a Mortgage Lender License (# MLD638) approved by the Florida Office of Financial Regulation, Phone: (850)410-9895; and in Pennsylvania holds a Mortgage Lender License (# 29750) approved by the Pennsylvania Department of Banking and Securities, Phone: (717)787-2665.