A conventional mortgage is a loan that isn’t guaranteed or insured by the government. They are, however, sold to government-sponsored entities (Freddie Mac, Fannie Mae) on the secondary market for investment purposes. They are called “conforming loans” because they are subject to loan limits in order to conform with Fannie Mae and Freddie Mac rules. The loan limit will vary depending on the region.

Conventional mortgages are offered by private banks, credit unions and investors. Without the federal government backing the risk of default, they are selective about who to lend to. Compared to FHA, USDA and VA loans, banks will request a higher down payment (20% to avoid mortgage insurance) and credit requirements are stricter. Loan terms of 10, 15, 20 or 30 years are available. Closing costs are also higher, so these loans are best suited for the most financially secure individuals.

A jumbo loan is non-conforming and therefore harder to sell on the secondary market. This means it is an even riskier product for banks to give out, in addition to the risk of lending larger loan amounts. The guidelines will be similar to a conventional loan, but rates are higher and the thresholds for down payments, cash reserves and income are much stricter. Most banks will require 20% or even 30% down, and will adhere to very strict guidelines.

We offer maximum flexibility on approval guidelines, down payments, income and cash reserves required, at very competitive rates. We are one-stop shopping, representing every lender and product out there. The average borrower only shops at 2-3 banks, but we will shop every program available. We streamline the process so you do not need to approach multiple banks to compare rates, terms, and fees. This translates to saving you both time and money.

All banks can offer you a standard 30 year conventional mortgage. Typically a credit score of 740 is required in order to get a good rate. We have the widest range of loan products available, which means our conventional loan programs allow for scores as low as 620 with competitive rates. Most banks will only offer down payments as low as 5%, but we have products with down payments as low as 1%.

Our jumbo product offerings are also very flexible. We can match you with a product requiring only 10% down with more generous DTI (debt-to-income) limits and minimal cash reserve requirements, at very competitive rates. The range of products we provide is unmatched by most banking institutions, so you can be confident that you are receiving the best loan possible. If you already have a pre-approved quote from a bank, you can still give us a call and we can locate a product that will beat their rates and terms.

In addition to representing every program out there for maximum flexibility, we can bypass many fees and have reduced overhead compared to other banking institutions, and these savings are passed directly to our clients.

If you still do not meet the guidelines for these programs, we offer jumbo products up to $3M for self-employed borrowers or investors through our alt-doc programs, with no tax returns required. It may make more sense for you to utilize these programs rather than a traditional jumbo product, depending on your source of income, tax returns, fees, existing assets, cash on hand, and loan purpose.

We have 15+ years of experience in the mortgage industry, both pre- and post-reform. We have seen how the industry fluctuates and continue to stay ahead of ever-changing guidelines. Working with an experienced mortgage banker is imperative to ensure you get the best deal and also prevent your loan from stalling. Getting a mortgage is a stressful process, and a home is likely the biggest purchase you will make in your life, so you want someone who will get it done right.