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) 488-9494 to start the process and figure out the best program for you!

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October Lunch and Learn / Webinar: The Ins & Outs of Appraisals

Appraisals – Its complicated

When we start talking appraisals it can get confusing.  As lenders, we learn what’s important for getting the loan closed.  Realtors put their market analysis hat on when they think about them.  Neither is correct.  Look at it this way, an appraiser is in a profession in and of it’s self.  Appraisers are licensed and trained to look at property values in a pretty specific way.  On top of that the different loan programs all have different “rules” the appraiser must follow.  Then at the end of the day its not a specific formula but a matter of opinion.  That’s why we always tell people we could order 5 appraisals on a property and we would get 5 different sets of results.   During this event we are going to go over many of the things the appraisers look at, how they analyze the property, and some of the different variables that come into play across different loan programs.  If you are looking for a deeper understanding of how appraisers think this is a must attend event.

Hot Topics We Will Cover

Here is a list of some of the things we will cover during the event:

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