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Is a Conventional Loan right for me?

By
Mortgage and Lending with Horizon Lending Services, LLC NMLS # 942863

What is the best home loan for me?

Ready to buy a home, but not sure what type of loan is the best fit for you? There are two major groups of home loans: government-backed and conventional. No matter which type works best for you and your family, we are here to make sure you get the best deal, the best loan, and the best home you can get.

 

What is the difference between a conventional loan and a government-backed loan?

Government backed loans are insured to private lenders by the government, whereas conventional loans are not insured and can cost the mortgage lender if the borrower defaults. It tends to be easier to qualify for a government-backed loan than a conventional, but conventional loans generally carry a quick approval. Also, conventional loans require somewhat near 20% of the total cost of the home as a down payment.

 

When should I consider a conventional loan?

If you have good credit and need a loan quickly, this is the loan for you. There are fewer restrictions on the loan itself, and there are fewer requirements for you to meet. Plus, a conventional loan is usually approved much faster than a government-backed loan. Also, you won’t necessarily need to purchase mortgage insurance, which can save you quite a bit of money in the long run. Another reason to consider a conventional loan is if you’re looking to purchase a condo.

 

Conventional loans are beneficial in a number of ways, which is why they can be challenging to qualify for – but if you do qualify, it is definitely something to consider seriously. Let Mortgage Investors Group get you started on the right path toward home ownership.

 

For more information visit horizonlendingservices.com/conventional-mortgages

Comments (1)

William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

I find that a conventional loan is the best one to go with if at all possible

Dec 30, 2016 06:39 PM