Conventional Home Loans
Often referred to as the “Traditional Mortgage”, a conventional loan is a great way to finance the purchase of a home and will typically appeal to buyers that have good credit and money for a down payment. If you’re a buyer with less than perfect credit or need a lower down payment option, the conventional loan may not be right for you. Every loan program has its pros and cons and we will help find the best fit for your situation when we run thru the loan application.
Pros for conventional loan?
- As little as 3% down for owner occupants
- For investors; 15% down single family and 25% down 2-4 units
- Great Rates
- Low private mortgage insurance (PMI) with good credit
- PMI monthly premiums “drop off” (must meet requirements)
- No PMI required if down payment is 20% or more
- Most lenient appraisal process
- Appraisal Waivers available
- Works with down payment assistance programs like MSHDA for people in Michigan
- 15, 20, & 30 year options are available
- Ability to finance in renovations with the Conventional Homestyle Loan
Cons to conventional loans
- Rates are based on credit score; the lower the score the higher the rate
- 620 is the minimum credit score where other programs allow for lower scores (exception is some averaging of credit scores)
- PMI premiums can be higher if the credit scores are low
- Guidelines for a borrower to qualify are stricter compared to other loan programs
Conventional loans are one of the best options out there for many home buyers. Everyone’s situation is different call us today at 269.360.7109 to start the process and figure out the best program for you!
Latest Blog Post
The Family Opportunity Mortgage
Unlocking Homeownership: Supporting Loved Ones with the Family Opportunity Mortgage Program
For many, the dream of homeownership remains a significant milestone. But what if you could help a close family member achieve that dream, even if they face financial hurdles? The Family Opportunity Mortgage Program, often referred to as the Family Assist Program, is a specialized mortgage solution designed to do just that – empower families to support loved ones in purchasing a home.
What is the Family Opportunity Mortgage Program?
This unique program was created to address a common challenge: families who want to assist elderly parents, adult children with disabilities, or other qualifying relatives in buying a home, but where the assisting family member might not be able to occupy the home themselves, or where the assisted family member faces challenges meeting traditional mortgage qualifications alone. It essentially allows family members to secure financing for a loved one’s primary residence, often with more favorable terms than a standard investment property loan.
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