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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Buying and Financing Rental Property 2022 Event

July 2022 Lunch & Learn Event and Webinar for Realtors and Investors

Working with home buyers searching for a new primary residence is a totally different game compared to working with investors and rental property.  Sure, there are similarities, but what want-to-be home owners care about is different than what an investor cares about.  Frankly, for an investor, it’s all about the money and it should be.  When someone purchases a rental property they are essentially running a business.  If we can help them run a successful business and turn a profit they will likely come back and buy more properties.

There are lots of want-to-be investors out there and the hardest part is getting started.  We are going to help unravel the maze.  We will also look at long term planning.  Often just knowing what needs to happen to acquire the next property and the next one after that is one of the keys to success.  Owning rental property can be a great way to build wealth and we are here to help.

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