Conforming Loan Program: Is the Right Option for You?

If you're ready to purchase your first home, you may wonder if you'll have the financing you need to complete the transaction. If you don't have a high down payment or a great credit score, it may cause you even greater stress. One of the options you may qualify for is a conforming loan program. Learn more about conforming loan programs, how they work, and how to apply for a loan below.

1. What's a Conforming Loan Program?

There are many ways families and individuals can purchase home today, including nonconforming and conforming loans. Although each type of home loan program comes with its own unique benefits and features, conforming loans may be better for you. There are reasons for this.

Conforming loans typically don't have very stringent requirements behind them, unlike nonconforming loans (or mortgages) that require higher down payments, better credit scores, and other strict guidelines. In most cases, conforming loans and programs allow buyers to place lower down payment on a home. Conforming loans may also be more flexible about your credit score. 

Conforming loan programs may benefit you in other ways as well. You can find out if you qualify for a loan by speaking to a financing company soon.

2. How Do You Apply for a Conforming Loan?

A financing company may examine your current financial situation, job history, and credit score to see if you meet the qualifications for a loan. If you do meet the qualifications or requirements, a financing company may ask you to complete a loan application.

Before you complete an application, do the following things:

  • gather or obtain copies of your monthly expenses
  • obtain copies of your tax returns
  • secure copies of your bank accounts, credit card statements, and/or school loan documents

You'll need the above information to fill in the application. A loan servicer may also ask for copies of your photo identification card, Social Security card, and other delicate paperwork. If you don't have copies of the information, take time out to obtain it. 

If you plan to add someone else to the loan, such as a spouse or adult child, they may need to supply the information above as well. A servicer will generally go over the application and what they need from you when they contact you. 

If you'd like to learn more about loan programs, call or email a loan service provider today. They'll be able to explain your options.