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:
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As little as 3% down payment
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No upfront Private Mortgage Insurance (PMI) cost
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Option to remove PMI when the loan-to-value reaches 80% or not to pay PMI
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Fewer restrictions
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Flexible appraisals
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Faster closings
Draw backs:
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Interest rate is higher that FHA loans
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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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