Conventional loans are the most common and universal type of financing option with the multiple variety of ways you can use these loans from first-time buyer programs to seasoned investors.
Occupancy for Conventional Loans
This is for your home that you spend a large majority of your time. Primary Residence financing offers the most competitive financing terms.
Also known as Vacation Homes. This is for homes you spend less than half your time at. Second homes must be a reasonable distance from your primary residence.
This is for homes you do not plan to live in at all. You can use this type of financing for long-term or short-term rentals, such as Airbnb or Vrbo.
Down Payment Options
3% Down Payment
3% Down Payment is available for first-time home buyers or borrowers with income that is under 80% of the area median income.
5% to 19.99% Down
For borrowers that are not first-time buyers or low income, the minimum down payment is 5% down for primary residence. Less than 20% down will require PMI (Private Mortgage Insurance). Don't worry, we offer discounted mortgage insurance for our clients
20% or More
For those who are looking to put a larger chunk down to avoid mortgage insurance or looking for better financing terms.
Why Conventional Financing?
Conventional financing is the most common type of financing due to it being able to encompass a wide variety of different borrowers financial situations and needs. It offers financing options for first-time buyers, move-up buyers, vacation goers, and investors. It really covers it all!
What's great about conventional financing is while it does require mortgage insurance if you choose low down payment options (less than 20% down), the mortgage insurance can eventually fall off after a certain period of time. It's not stuck on the loan for the life of the loan.
Some things to consider about conventional financing is that it is relatively strict when it comes to credit scores. This isn't to say you can't get a conventional loan with less than perfect FICO scores. It just means that the minimum FICO score is generally higher than some other financing options. Credit scores and down payment amounts can play a large part in your interest rate and mortgage insurance rates. Generally, the higher the score and down payment the better the financing terms available.