Conventional loans are the most common type of loan. If your credit score is above 680 and you have at least a 3% down payment for a purchase, or 3% equity on a refinance, a conventional loan is likely to be the best choice for you. If your income exceeds the area median income for your specific county, you will need to put down 5% on a purchase and have at least 5% equity on a refinance.
|2019 Conventional Loan Limits|
|County||1 Unit||2 Unit||3 Unit||4 Unit|
- Maximum LTV (loan-to-value) on Purchase or Refinance: 97%
- Minimum down payment on a purchase: 3% or 5%
- Down payment may be gifted to you by family
- Allows non-occupying co-signers to help you qualify
- Fixed-Rate Terms Available: 8-30 years (customizable in one-year increments)
- Rate Types: Fixed or Adjustable
- Adjustable Rate Mortgage (ARM) Types: 5/1, 7/1, and 10/1
- Mortgage Insurance Types: standard monthly MI and lender-paid, “No monthly MI”
- Cash out refinances allowed up to 80% LTV
- Can be used to buy or refinance an investment property
Historically all conventional loans with less than a 20% down payment on a purchase, or less than 20% equity on a refinance, required you to pay monthly mortgage insurance, also known as MI, PMI, and MIP. LendRight Mortgage offers conventional Utah mortgages without monthly MI, allowing you to borrow up to 97% LTV without monthly MI. If you put down less than 20% on a purchase, or have less than 20% equity in your home for a refinance loan; we can help you choose between the loan with regular monthly MI or a loan with no monthly MI, and a slightly higher interest rate. Loans with traditional monthly MI will have the monthly MI drop off automatically when you pay the loan down to 78% LTV of the original purchase price/appraised value. You can request it be dropped when you hit 80% LTV. We can give you a custom quote on both loan options and help you determine which type of MI is best for your circumstance. The no monthly MI (lender-paid MI) loan often has the lowest monthly payment, even though the interest rate is slightly higher. It can be the best option in many circumstances, especially for those who will have the loan, or home, for less than 10 years.
If you need a loan that exceeds the county loan limits listed here you will need to apply for a jumbo loan. If your income exceeds the amounts listed below, you must put at least 5% down on a purchase, and have at least 5% equity on a refinance. If your income is under these amounts you qualify to for the 3% down payment. There are some areas in each county that are considered “underserved”, where there are no income limits for the 3% down program. We can help you identify these areas.
|County Area Median Income|
|All Other Counties||$71,100|