A conventional mortgage (also called a conforming mortgage) is a home loan that is not government insured or guaranteed. In most situations, government loans also require a substantial upfront mortgage insurance premium and monthly mortgage insurance premium. The conventional loan does not require any upfront mortgage insurance and does not require monthly mortgage insurance if the down payment is 20% or greater. Usually the program is used for borrowers with better credit scores.
On a conventional loan with less than 10% down, the seller can pay up to 3% of the buyer’s closing costs. If the buyer puts down 10 – 20%, the seller can pay up to 6% of the buyer’s closing costs.
Great option for borrowers looking to purchase with a low down payment or refinance with limited equity. Subject property must meet the county loan limit requirement.
Qualify more first-time homebuyers with this 3% down payment solution.
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