New Mexico Conventional Loans

At Acceptance Capital, we specialize in many different loan types in Santa Fe and the entire state of New Mexico.  One of the most common loan types in today’s housing market is a conventional loan.  A conventional loan is one of the most traditional loan types provided by private lenders.

A conventional loan is a loan that is not insured by a federal enterprise such as FHA, FmHA, or VA.  Conventional loans adhere to the guidelines established by the Federal National Mortgage Association, also known as Fannie Mae.  

Fannie Mae is a corporation established by the federal government whose purpose is to buy and sell conventional mortgage loans.  They are responsible for setting the maximum loan amounts and requirements that borrowers must meet in order to qualify.

A conventional loan is typically a 30-year fixed rate mortgage.  This means that the interest rate is locked in for the entire 30-year term length regardless of market conditions during the loan term, however refinancing an existing loan could be an option.  They also normally require a 20% down payment when getting started.  This means that 20% is paid initially and the remaining 80% of the home value will be financed by the lender.

Conventional loans are great for those who can afford the 20% down at the beginning of the loan term and looking for a lower interest rate.  Borrowers who cannot afford the initial 20% down can still finance with a non-conventional loan such as an FHA or VA loan but will have higher interest rates.

To ensure qualification for a conventional loan, a borrower will need to have a debt-to-income ratio of 28/36 and a FICO credit score of 620 or higher.  However, this does not mean that a borrower will not qualify if they do not meet those metrics.  

When determining your interest rate for a conventional loan there are several factors that will come into play.  An interest rate will be different depending on which conventional loan program a borrower qualifies for, their FICO credit score, and the amount available for a down payment.

To see if you qualify and what your interest rate will be, please contact Acceptance Capital at 505-204-0683.

Although we are located in Santa Fe, we specialize in providing some of the most competitive conventional loan rates throughout the entire state of New Mexico.  Click here for a quick and easy quote!