Standard Mortgage: 20% Down False impression

While speaking to a client today, I realized that there is a lot of misunderstanding when it comes to a Conventional mortgage and the pros and cons that they have with one.

For first time home buyers a conventional loan will offer:
  • As little as 3% down payment
  • No upfront Private Mortgage Insurance (PMI) cost
  • Option to remove PMI when the loan-to-value reaches 80% or not to pay PMI
  • Fewer restrictions
  • Flexible appraisals
  • Faster closings
Draw backs:
  • Interest rate is higher that FHA loans
  • Debt-to-Income ratios allow for less debt
There are also programs available via Freddie Mac and Fannie Mae for lower income individuals and families which may qualify you for a break in your interest rate and a reduced PMI rate.

Give us a call today or schedule an appointment with Abel online to see what options are available for you!


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