Most of the loans generates today are FHA insured mainly due to the low down payment requirements and higher DTI requirements. Nevertheless, conventional loans are a great option and less expensive with the help of Private Mortgage Insurance (PMI). Recently new options for PMI have made it possible for borrowers to obtain a conventional loan with as little as 5% down payment and have a lower monthly payment than with an FHA loan. Instead of an addition to the monthly payment the PMI is financed into the loan therefore eliminating the monthly payment add on. If you would like to know if you qualify for this program please fill an application and one of our professionals will contact you.
Following are some of the features and requirements on conventional loans:
Credit score – the minimum score changes on a regular basis so call for details. Credit scores and down payment go hand in hand. The lower the score the greater the down payment required.