Conventional Loans
Often conventional mortgages are frowned upon because of a notion that you need a 20% down payment to qualify for this mortgage. This is far from the truth, conventional mortgages have their purpose and may make sense for you even if you are refinancing. Give us a call to see if this program is a good fit for you.
First time home buyers that will be occupying the property can give as little as 3% down payment on a conventional loan.
Pros
Cons
Pros
A conventional mortgage give you a couple of benefits that are unique to it.
- Low Down Payment. Can be as low as 3% down payment.
- Can Remove PMI. You can request the lender to remove your Private Mortgage Insurance without having to refinance the loan like FHA mortgages.
Cons
The downside are:
- Max debt to income aloud ration is lower. DTI aloud on this type of loan is lower than the aloud percentage on an FHA. So your purchasing power is decreased.
- Rates tend to be higher. Conventional rates are usually higher than FHA rates.