If you are applying for a mortgage, here is what you need to know about conventional loans:
- A conventional loan offers buyers the ability to avoid or cancel mortgage insurance upfront or during the life of the loan.
- Monthly Mortgage Insurance (MMI) is usually less than an FHA loan
- Options to pay a one-time “Single-Premium” Mortgage Insurance to eliminate Monthly Mortgage Insurance when giving less than 20% down payment.
- No Mortgage Insurance (monthly or premium) with a 20% or greater down payment.
- Allows for a seller concession of up to 3% of the sales price for buyer’s closing costs if the down payment is less than 10%
- Conventional loans typically require higher down payments but they usually have lower interest rates.
- Conventional loans may be processed faster because there is usually less paperwork than government-backed loans.
- Down payment assistance programs available for qualified buyers.
Conventional loans are available as fixed rate or adjustable rate mortgages.
Call ZABE Mortgage or apply online to find out if a conventional loan is right for you.
We offer a number of loan programs that may be right for you. Count on your ZABE Mortgage loan professional to help you select the best one.
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