Conventional Loan Information for Consumers in North Dakota

If you are looking for a home loan in the Bismarck or Mandan, ND, area, we've got the information that you're looking for regarding terms, interest rates, and more. We'll answer your questions so that you can move forward with a home loan through America's Home Loans.

What is a Conventional Loan?

A conventional loan is a mortgage that is not backed by any Government agency such as the Federal Housing Administration (FHA) or Veterans Administration (VA). Conventional loans meet the lending requirements of Fannie Mae and Freddie Mac, the two largest buyers of mortgage loans in the US.

What Types of Property Can I Buy With a Conventional Loan?

Conventional mortgage loans can be used to purchase condos, modular, manufactured and mobile homes, planned unit developments, and 1-4 family residences. They can be applied to first and seconds homes as well as investment properties.

What Are the Borrowing Limits for Conventional Loans in Bismarck and Mandan?

The conventional loan limits are the same for Burleigh and Morton counties.

• 1 unit dwelling - $510,400

• 2 unit dwelling - $653,550

• 3 unit dwelling - $789,950

• 4 unit dwelling - $981,700

Am I Eligible for a Conventional Loan in North Dakota?

Government-Sponsored Enterprises (GSEs) such as Freddie Mac or Fannie Mae set the terms and conditions that are followed for conventional conforming loans. In North Dakota, in order to be eligible for a conventional conforming loan, your monthly housing costs — consisting of property taxes, insurance, principal, and interest — must meet a specified percentage of your gross monthly income.

Your creditworthiness, as determined by your FICO score, will also be considered. A score of 620 or higher is usually necessary for approval. Your other debt will be considered as well in order to ensure that you have enough income to pay for your housing costs and other obligations.

Am I Eligible for a Conventional Refinancing Loan?

Refinancing a mortgage in North Dakota requires a monthly income sufficient to cover property taxes, insurance, principal and interest as a specified percentage of your total monthly income. Again, your creditworthiness and other debts will be considered, too.

How Much Money Do I Need for a Down Payment?

The amount of money necessary for a down payment varies based on loan options, the purpose that the property will be used for, and the number of units being financed.

Primary Homes

For fixed-rate mortgages (FRM), the following guidelines apply:

• 1 unit - 3%

• 2 units - 15%

• 3 units - 25%

• 4 units - 25%

For adjustable-rate mortgages (ARM), the following guidelines apply:

• 1 unit - 10%

• 2 units - 25%

• 3 units - 35%

• 4 units - 35%

Second Homes

• For fixed-rate mortgages (FRM), the following guidelines apply: 1 unit - 10%

• For adjustable-rate mortgages (ARM), the following guidelines apply: 1 unit - 20%

Investment Properties

For fixed-rate mortgages (FRM), the following guidelines apply:

• 1 unit - 15%

• 2 units - 25%

• 3 units - 25%

• 4 units - 25%

For adjustable-rate mortgages (ARM), the following guidelines apply:

• 1 unit - 25%

• 2 units - 35%

• 3 units - 35%

• 4 units - 35%

If you're looking for a conventional mortgage in North Dakota, we hope this has answered your questions. For exceptional customer service, competitive rates and attractive terms, contact America's Home Loans today to begin the application process. You'll be in your dream home before you know it!