Many folks guess that you must have a huge down payment to use a conventional mortgage, but this is in factnot true.. Although FHA loans are popular for first time home buyers with low down payments, there are other conventional loan alternatives with comparable terms. This blog explains 97 percent conventional mortgages in MA.
Important Facts on Conventional Mortgage
Income and Debts
For any type of financing, lenders will consider monthly earnings and all applicable debts. Normally, total debt-to-income (including the predicted monthly payment on the new mortgage) must not surpass a particular amount. For conventional financing, that percentage is actually less than FHA loans. This can make it harder for some home buyers to qualify or might lead to a lower amount for which a buyer is approved.
Other Loan Requirements
For borrowers with satisfactory debt-to-income percentages and who meet other applicable requirements, conventional mortgages provide an easier process for qualification overall. Up-front and recurring mortgage insurance rates may also be less expensive and may lead to useful savings. Be aware that not all lenders have the exact same criteria or fees.
More On 97 Percent Conventional Mortgages In MA
Every mortgage alternative is different. It is important that you are aware of what they are in order to make an educated decision on which option is the best option for you. It is important to speak with a local loan professional for accurate details. Most offer complimentary pre-approvals and advice. For assistance with selecting a local home loan broker, contact Peter DaMore at Law Offices of Peter T. DaMore Jr. at 781-229-7900 or email@example.com.