What is a Conventional Loan?
Conventional loans are the traditional financing source that are backed by Fannie Mae and Freddie Mac.
How much do I have to put down?
The minimum to put down on a Conventional loan is 3% for first time home buyers. Yes, even lower than FHA! However, if you put down less than 20% of the purchase price, private mortgage insurance (PMI) is required and adds to your monthly payment.
What are the requirements?
Since conventional loans are not backed by an insurance fund like FHA loans, the rates are a little higher and very credit score driven. The minimum FICO is 620, however for the best rates your middle FICO should be over 740.
Are FHA loan always the best?
Everyone’s situation is different. I always do a comparison to see which option works out best. FHA guidelines are more lenient for foreclosures, short sales, and bankruptcies. However, if that doesn’t pertain to your situation it may be better to go Conventional with a little more down. Call me today and we can go over your personal situation.
Working with Geneva Financial, LLC
- We put YOU first.
- Geneva Financial, LLC offers some of the most competitive rates in the Nation!
- Fast and efficient, we close most of our loans in 30 days or less.
- We offer a variety of loans. Geneva Financial, LLC will find you the loan that is right for you!!!
**Geneva Financial, LLC is not affiliated with or acting on behalf of or at the direction of FHA, VA, USDA or the Federal Government.