What Are the Advantages of Conventional Financing?
There are several benefits of conventional financing, including:
- You can buy a primary residence, second home, or rental property with most conventional loans
- You have the choice of fixed rates, adjustable rates (ARMs), and loan-term options from 10-30 years
- Down payments are as low as 3%
- You pay no monthly mortgage insurance with a down payment of 20% or more
- Mortgage insurance costs less than with government loans and may be cancelled when your home equity reaches 20%
Are Conventional Loans Realistic for First-Time Homebuyers?
If you’re a first-time homebuyer and are struggling to save up for a large down payment on a home, the Conventional 97% program may be what you need. It can be a great alternative, and is often more affordable than FHA loans. With a Conventional 97% Program, you can:
- Finance up to 97% of the home’s value, with down payments as low as 3%
- Use gift funds for your down payment
- Get lower mortgage insurance rates if you attend home counseling and meet specific income limits
Learn More about the Loan Application Process
A Waterstone Mortgage home loan professional will answer any question you may have and walk you through the loan application process.Get Pre-Approved!