Conventional mortgages are ideal for borrowers with good or excellent credit. They follow fairly conservative guidelines.
• Borrower credit scores: Minimum 620
• Minimum down payments: Minimum 3% with Home Ready Fannie Mae program or 5% for everything else.
• Debt-to-income ratios: Maximum 49.99% vs 56.99% for FHA and 64.99% for VA.
• Low down payment required (3 percent minimum)
• Mortgage insurance is required for loans exceeding 80 percent loan-to-value however, we have lender paid MI financing. See our No PMI page.
• Conventional mortgage insurance is only monthly or single premium (FHA upfront and monthly premiums, and VA has a similar fee called Funding Fee)
• Conventional mortgage insurance is very credit sensitive but will automatically end at 78 percent loan-to-value. (FHA will stay for the entire life of the loan)
• Conventional loans can cover a higher loan amount; up to $453,100.00 vs. $345,000.00 for FHA. Loan amounts over $453,100.00 become “Jumbo loans”.
• Even though conventional loans may have higher interest rates, their monthly payments may still be lower.
We have excellent Conventional loan rates although most of our clients putting less than 20% down payment will prefer not to pay mortgage insurance and they elect Bluecastle Lending’s No Mortgage Insurance program as the payments are usually lower
For information on this program contact us at 954-866-0000 or email us at info@BluecastleLending.com. Bluecastle Lending is an Equal Opportunity Lender