Conventional Loans are the loans that most people think of when talking about a mortgage. These loans are used for primary purchases, second homes, and investments alike.
Why Choose Conventional Loans?
With a minimum down payment of 3% for first-time homebuyers, and 5% down for repeat buyers this is a great program for borrowers with good credit history. Conventional Loans are also great for investors with 20-25% down since they allow you to use projected rental income to assist in qualifying.
Conventional Loans aren’t backed by government entities, so they have stricter lending guidelines when it comes to Debt-to-Income ratios and credit score requirements. These loans will have mortgage insurance if you are putting less than 20% down, but at Elev8 Mortgage we are able to shop and get not only low-interest rates but low mortgage insurance as well.