I Want Flexible Down Payment Options
Discover the Benefits and Considerations of Conventional Home Loans
Conventional home loans come with several key benefits, including:
- Competitive Interest Rates: Conventional loan rates can be highly favorable, especially during market dips. These rates often align closely with current economic conditions.
- Low Down Payment Options: Contrary to common belief, you don’t need 20% down—conventional loans can be obtained with as little as 3% down.
- PMI Flexibility: Private Mortgage Insurance (PMI) premiums can be canceled once you’ve paid down 78% of your home’s appraised value.
- Fixed or Adjustable Rate Options: Choose between locking in a fixed rate for stability or opting for an adjustable-rate mortgage if you plan to move in a few years.
- Versatility Across Property Types: Conventional loans can be used for primary residences, vacation homes, and even rental properties, unlike government loans that are limited to primary homes.
Considerations of Conventional Loans
While conventional loans are appealing, there are some considerations:
- Higher Credit Score Requirements: A credit score in the mid-600s is typically needed, and borrowers with lower scores may face higher interest rates.
- Stricter Underwriting Standards: Expect a debt-to-income (DTI) ratio requirement of no more than 45% in most cases.
- PMI for Low Down Payments: Borrowers putting down less than 20% will need to pay PMI, adding to monthly expenses.
Why Choose Granite Bank for Conventional Loans
At Granite Bank, we offer:
- Down payments starting at just 3%.
- Options to eliminate PMI with a 20% down payment.
- Financing for property types not typically covered by government loans, such as investment properties.
Let Us Help You Navigate Your Options
If you’re unsure whether a conventional loan is the right fit, our experienced Mortgage Loan Originators are here to help. Contact us today for personalized guidance and take the next step toward owning your dream home with confidence!
