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LET'S GO CONVENTIONAL!

If you have good credit, a steady income, and enough equity in your home, our Conventional Refinance loan programs offer great rates and faster closings in most cases. So if you fall into this category and are ready to move forward, let's get started today!

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LET'S GO CONVENTIONAL!

If you have good credit, a steady income, and enough equity in your home, our Conventional Refinance loan programs offer great rates and faster closings in most cases. So if you fall into this category and are ready to move forward, let's get started today!

Our Conventional Refinance Option

Should I do a Conventional mortgage refinance?

Conventional mortgages can have a fixed interest rate or an adjustable interest rate. Typical fixed-rate loans have a term of 30 or 15 years. However, Sun American Mortgage also offers 25-year, 20-year, and 10-year fixed-rate options. 

Conventional mortgages require your home to have some equity to qualify for a refinance.

What are the requirements for Conventional Refi?

Unlike FHA or VA loans, conventional loans are not insured by the federal government, though borrowers are required to purchase private mortgage insurance if their home equity is less than 20 percent of the value. Conventional mortgage qualification is relatively straightforward if you have a decent credit score, financial stability and the required equity in your home. 

You must currently have a conventional loan in order to refinance into a new conventional. 

We guide you through every step along the way!


  • STEP1

    Financial Documentation
    To qualify for a conventional mortgage, you will need to provide up-to-date, accurate documents that prove your financial stability. These include bank statements from the past two months, recent pay stubs, W-2 forms and tax returns from the previous 2 years. If you are self-employed, you should also gather business tax return information for the past two years. 

  • STEP2

    Debt-To-Income Ratios  (What is This?)
    An important aspect to qualifying for a mortgage is your “total debt to income ratio”….what is that? To calculate your debt to income ratio, add up all monthly debts, such as car loans, student loans and child-support payments, as well as your future mortgage payment. Divide the sum by your monthly gross income. If the result is more than 0.44, or 44 percent, it may be beneficial to either wait to apply for a conventional mortgage or choose an FHA loan instead.

  • STEP3

    Housing Ratio
    This is one of the two debt to income ratios that lenders consider during the mortgage application process. To calculate your housing ratio, simply divide your potential monthly mortgage payment — principal, interest, taxes, insurance and HOA dues if applicable — by your gross monthly income. Most conventional lenders prefer that borrowers have a housing ratio of less than 28 percent, or 0.28. If your result is higher than 0.28, you might have difficulty qualifying for your conventional loan. 

  • STEP4

    Home Equity 
    Generally, conventional refinance only requires 5% equity, and 20% equity if you want to pull cash out. This is for owner occupied single family residence. If it’s an investment property or second home it requires more equity. 

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