When purchasing a home, this is the program that most people think of and first. This is the most common type of home loan, typically because of the great rates that borrowers can qualify for. Backed by Fannie Mae and Freddie Mac, this type of loan has been getting people into homes with 30, 20, 15, and even 10-year mortgages.
Over the years Fannie and Freddie, guideline setter for conventional financing, have made major changes in program options and have become more aggressive in the types of loan programs offered.
Both programs are credit score driven and requirements for conventional loan qualification require higher credit scores, the down payment requirements have changed considerably. Conventional loan programs now offer loans with down payments as low as 3% down payment and lower MI payments.
If you’re interested in buying a home, but are worried about the down payment requirements for a conventional home loan, see our page on VA or USDA loans. If eligible, both programs can allow for a zero down payment. If you’re not a veteran or your property doesn’t qualify for USDA then take a peek at our FHA page, which offers lower down payment options.
If you still want more information, feel free to call us to talk to one of our consultants, 254-405-6690, or fill out our online application.