What Is a Conventional Home Loan?

Conventional loans demand a higher down payment compared to those coddled government-backed loans. We're talking 5% to 20% of the home's purchase price. But wait, there's more! Conventional loans have some strict rules, especially when it comes to credit scores. The higher your credit score, the better your chances of scoring sweet interest rates and awesome terms.

But hold your horses! If you dare to put down less than 20% on a conventional loan, prepare yourself for the wacky world of paying PMI. PMI is an acronym that means private mortgage insurance. So, you are probably thinking, how much will PMI cost me? PMI can cost you anywhere from 0.5% to 1% of the loan amount per year. So keep this in mind if you plan to go for the conventional loan route.

Jackie Veloce
Enkore Real Estate
Licence: SL3510944
[email protected]
https://jaclynveloce.enkorerealestate.com/

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