Why go for the conventional?
Conventional loans are the most common loan in the market today.
Conventional loans work best when you have more than 10% equity or down payment, and you have higher credit scores. Conventional loans can also be used for a greater variety of property types and loan purposes.
If you have less than 20% equity, you are required to have mortgage insurance, however, depending on the loan-to-value and your credit scores, the mortgage insurance can be very inexpensive. If you have at least 20% equity or are making a 20% down payment, then Conventional loans are hard to beat.
features of a conventional loan
- Down Payment options as low as 3% with an additional 2% Grant from lender; for 1% Down Payment out of pocket
- Gift funds allowed for Down Payment and Closing Costs
- Very Attractive to Sellers
- Seller concessions allowed