real estate lending in
San Diego for 35 years.
what our customers are saying about us
“Everyone I worked with at RanchoTed was very communicative and knowledgeable throughout the entire process.”
“Great experience throughout everything, from my initial phone call to closing. I highly recommend Ted and his team to anyone looking for a real estate loan.”
“I’ve worked with Ted on several different loans. He’s gotten me loans on properties no one else would touch but because of Ted’s great relationship with lenders and extensive knowledge he was able to get me a loan with great terms and a locked-in low rate. I wouldn’t recommend anyone else, especially if you’re working with a complicated loan.”
“RanchoTed made the entire process from start to finish so easy. Ted and his team worked hard to get me the loan I needed. All my questions were answered in a timely manner and they really took the time to make sure I understood everything and was kept in the loop on what was going on.”
why choose conventional loans?
There are many types of loans available to homeowners and investors from Hard Money loans, government-backed loans, and conventional loans. Qualifying for a conventional loan in lieu of a government-backed loan may be a little tougher but there are many reasons why this might be the best option for you. Below are a few examples.
Fixed rates – with a conventional loan or fixed-rate mortgage, you can lock in the interest rate for the duration of the loan so you don’t have to worry about your payments ever increasing.
Lowest rate – conventional loans may offer lower rates and APRs, than other types of fixed-rate loans.
Refinancing available – with the selection of refinance options out there, it may be beneficial to you to refinance your current loan for a lower rate or even to a different loan type.
More property types – unlike government loans, conventional loans can be used on vacation homes or investment and rental properties.
conforming vs non-conforming conventional loans - which is better for you?
There are two categories of conventional loans: conforming and non-conforming.
Conforming conventional loans are loans that conform to the strict guidelines set in place by Fannie Mae and Freddie Mac. These guidelines include restrictions on loan size, credit score, debt-to-income ratio, and property standards.
There are several types of Nonconforming Conventional Loans. A common non-conforming loan is known as a Jumbo Loan. These are conventional loans that exceed the current loan limits set in place for conforming loans by Fannie Mae and Freddie Mac. Jumbo loans typically hold a higher interest rate, require a larger down payment, and sometimes a higher credit score. Other non-conforming loans can be made to borrowers who have poor credit, recent bankruptcy, have high debt, or on homes that have a high loan-to-value ratio. For nonconforming loans, lenders will typically charge a higher interest rate along with other fees and require insurance. All of this because they are considered riskier loans for the lender.
Still have questions or want to see which type of loan might best fit your needs? Give me a call so we can discuss your options and answer all of your questions.
do I qualify for a conventional loan?
Conventional loan requirements and rates vary depending on many factors including the lender. These loan types are required to follow the guidelines set in place by Fannie Mae and Freddie Mac.
Down payment – expect to put at least 3% of your loan down and up to 20%
Credit score – minimum 620 credit score
Debt-to-income ratio – in most cases lenders will require your debt-to-income (DTI) ratio to be below 45%
Documents required - ID and Social Security number, W-2’s and I-9’s from the past two years, federal tax returns, details on long term debts, proof of all income, all asset information.