Standard Mortgage: 20% Down False impression

While speaking to a client today, I realized that there is a lot of misunderstanding when it comes to a Conventional mortgage and the pros and cons that they have with one.

For first time home buyers a conventional loan will offer:

• As little as 3% down payment

• No upfront Private Mortgage Insurance (PMI) cost

• Option to remove PMI when the loan-to-value reaches 80% or not to pay PMI

• Fewer restrictions

• Flexible appraisals

• Faster closings

Draw backs:

• Interest rate is higher that FHA loans

• Debt-to-Income ratios allow for less debt

There are also programs available via Freddie Mac and Fannie Mae for lower income individuals and families which may qualify you for a break in your interest rate and a reduced PMI rate.

Give us a call today or schedule an appointment with Abel online to see what options are available for you!

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