Conventional Loans

Conventional Loans:

Conventional loans are mortgage loans offered by non-government sponsored lenders essentially all banks and credit unions. The types of loan included are fixed rate loans and adjustable rate loans.  The minimum down payment on a conventional loan is 5%.   You will have to pay mortgage insurance for this which is based on your credit score.  Your mortgage insurance will decrease based on the amount of money your put down.  You will have mortgage insurance on 10% and 15% down, but it will be cheaper.  If you decide to put 20% or more down on a conventional loan you will not be required to pay mortgage insurance.

Highlights:
 

  • 45% debt to income ratio in most cases.
  • 20% down equals no mortgage insurance
  • Gift are allowed from an acceptable source
  • Minimum credit score is 640
  • 3% seller asist for LTV under 90%. 6% seller assist for over 90%.

If you plan on putting the minimum 5% down we offer lender paid mortgage insurance products.  The interest rate is generally higher for this product but the payment is almost always lower.