The Potempa Team is here to help you with your dream home project! We offer different types of loans based on your need and credit score. If you’re after the best mortgage lenders in Phoenix in terms of customer service, you’ve found it. Speak to one of our consultants to clarify your loan related doubts.
What qualifies you for a conventional loan?
The eligibility requirements for a conventional loan are more stringent than other types of loans. The applicant should possess:
- Minimum of two years of continuous employment history
- Documents verifying the applicant’s income via W2
- Documentation relating to tax returns
- A credit score above 640
- Down payment of at least 5 – 20%
- Funds up to 2-3 months of mortgage payments in reserve funds
An applicant should fulfill all of the above requirements to get approved for a conventional loan. In this type of loan, the more your credit score, the lesser the interest rate for your mortgage. If you are interested in conventional loans, call us for more information.
VA Mortgage Pros and Cons
Borrowers with a below-average to average credit score and tough down payment requirements get their financial needs met by VA loans. These loans are flexible and offer the borrowers with an array of financial benefits. Military borrowers benefit the most from VA loans. Some of the pros and cons of VA loans include:
- VA loans involve no down payment. Borrowers can purchase homes up to the extent of $453,100 without paying down payment. Whereas loans like FHA and conventional loans involve a minimum down payment.
- Lending agencies charge a mandatory funding fee for VA loans. The good news is that, as a borrower with a service-connected disability, you do not have to pay the fee.
- VA loans are to fund your primary residence. You cannot use this scheme to purchase a second home or a property for investment purposes.
- There is no private mortgage insurance on a VA loan; however, on the downside; most sellers do not accept offers from VA borrowers. This is mainly due to an incomplete understanding of VA loans.
To approve a VA loan, we calculate the ratio of your total monthly expenses to your monthly income. If your debt to income ratio is less than 41%, you can get approved for a VA loan. We are the best mortgage lenders in Phoenix for VA loans.
What types of homes can I purchase with a conventional loan?
If you aim to buy single-family homes, investment properties, condos, townhomes, 2nd vacation homes and lofts, conventional financing may be the best option for you. Anything that falls under the standard housing type can get approved for traditional loans. Housing types like log cabins may not get accepted for this type of financing.
The Potempa Team has been serving clients for over 25 years with home loans and mortgage needs at affordable rates. We are the best mortgage lenders in Phoenix to offer a variety of loan programs with convenient payment options. Speak to one of our consultants today.