Question for mortgage experts Shane, Dallas

[Anonymous]

If I get a loan from a bank and the bank keeps all their loans in house is it considered conventional?  Reason I ask is because many homes we are looking at say cash or conventional only for financing.  We had a BK and foreclosure but found a bank that may lend to us due to strong credit scores, DTI, etc.  So I am not sure if this loan would be considered conventional or ?

Thanks

[Anonymous]

whether or not the bank will fund you a loan and keep it in house has nothing to do with conventional or not.  A bank or lender can keep an FHA loan in house.  I would guess it is not conventional as to get PMI you have to have 680 midscore (which you may or may not have) and there are alot stricter timeframes on BK, etc.  I could be wrong on that though.  Especially if it is an in house loan and they are not selling it.  Do you know what your other credit score is yet. because I would be surprised to see a 660 score be a compensating factor for a 7 month old BK.  That is average at best credit score, not a high score.  I would more expect that with someone who had a 700+ mid score or something.  Anyways, I am very curious.

How much down paymetn % are you putting down.   This may help get a better idea of the programs they may be using.

EIther way, a simple call to your bank would answer this alot better than any one of us could. 

[Anonymous]

I had another lender run the scores and they were as follows for wife and I

Wife

Equifax Beacon 5   677

Transunion Fico Classic 04  710

Experian Fair Issac Ver 2   704

Me

Equifax 697

Transunion 739

Experian 721

BK discharged May 08

30% down on a 190K condo.  Income is 11,700 monthly gross with no monthly debt

My concern was if they do fund it and the property we want says cash/conventional financing only will we qualify.  It sounds as if we will not know until the bank decides to give us a loan and what type of loan?

[Lel]

In this case, I believe that the restriction for conventional or cash just means that the sellers don't want to deal with any government-sponsored loans, such as FHA and USDA.  These programs have their own underwriting and appraisal guidelines, which could slow down the purchase process.

Your scores should be sufficient to go with a conventional mortgage.  Just keep in mind that to go conventional, you'll may need to put down as much as 20%. 

[DallasLoanGuy]

I believe the sellers would consider this conventional.

You may describe it as a 'bank loan' or 'portfolio loan' if asked.

as stated above... they want to avoid govt loans for whatever valid or invalid reason.

should be good to go