CONVENTIONAL

A Conventional loan provides flexibility with your down payment along with a fixed or variable rate. A Conventional loan offers several different terms to help you manage both your monthly payment and the amount of principal being applied to your loan each month. A benefit of a Conventional loan is that if you put down 20% or more, than you are not required to pay Mortgage Insurance. Although Mortgage insurance is a factor with a down payment of less than 20%, the terms remain flexible. Conventional loans can be used by both first-time homebuyers as well as the experienced buyer. Gifts are acceptable when qualifying for a Conventional loan. Typically, the rate on a Conventional loan is lower than Government loan products. As with most mortgage products, your credit score and debt-to-income ratios are considered in the qualifying process. A second mortgage (HELOC or HELOAN) can be used with a Conventional loan to help reduce your down payment and at times, avoid paying Mortgage Insurance.