Conventional Home Loans
Are you in the market for a new home and wondering what type of mortgage loan is right for you? Look no further than conventional loans! With flexible down payment options, competitive interest rates, and a variety of features and benefits, a conventional loan could be the perfect solution for your home-buying needs.
Down Payment Options
One of the benefits of a conventional loan is that there are a variety of down payment options available to borrowers.
Depending on the lender’s requirements and the borrower’s financial situation, a down payment can be as low as 3% of the home’s purchase price.
However, a larger down payment can help lower the monthly mortgage payment and reduce the total amount of interest paid over the life of the loan.
When getting a conventional loan, an appraisal will be required to determine the value of the home being purchased.
This helps ensure that the loan amount is appropriate for the home’s value. The appraisal is typically conducted by a licensed appraiser and the cost is generally paid for by the borrower.
Credit Scores Needed
To be approved for a conventional loan, borrowers typically need a credit score of 620 or higher.
However, some lenders may require a higher credit score depending on the borrower’s financial situation and the loan amount.
fannie mae home ready
Fannie Mae HomeReady is a program designed to help low to moderate-income borrowers buy a home. One of the benefits of this program is that it allows for a down payment as low as 3%.
In addition, HomeReady borrowers may qualify for reduced mortgage insurance premiums and lower interest rates. To be eligible for the program, borrowers must meet certain income requirements and complete a homebuyer education course..
freddie mac home possible
Freddie Mac Home Possible is another program designed to help low to moderate-income borrowers purchase a home. One of the key benefits of Home Possible is the ability to use gift funds or down payment assistance programs to help cover the down payment and closing costs.
In addition, Home Possible borrowers may qualify for reduced mortgage insurance premiums and lower interest rates.
To be eligible for the program, borrowers must meet certain income requirements and complete a homebuyer education course. With the added benefits of Home Possible, it’s no wonder that many borrowers turn to Freddie Mac when looking for a conventional loan
freddie mac Borrow smart
The program offers different grant amounts based on the borrower’s income level in relation to the county area median income. Here are the highlights of the program:
- $2,500 grant for borrower(s) whose qualifying income is less than or equal to 50% of the county area median income (AMI).
- $1,250 grant for borrower(s) whose qualifying income is greater than 50% and less than or equal to 80% of the county area median income (AMI).
These grants can be used to cover the down payment and closing costs, making it easier for eligible borrowers to purchase a home. It’s important to note that eligibility requirements for the program may vary depending on the lender and location, so it’s best to speak with our team to learn more about your options.
115 Stone Village Dr Suite D
Fort Mill, SC 29708
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Refine Mortgage Inc. NMLS# 2417960 | Refine Mortgage has no affiliation with the US Department of Housing and Urban Development, the US Department of Veterans Affairs, the US Department of Agriculture or any other government agency. Equal Housing Lender. Receipt of application does not represent an approval for financing or interest rate guarantee. Applicant subject to credit, acceptable appraisal, title, and underwriting approval. Not all applicants will be approved. Other terms and conditions apply. Contact Refine Mortgage for more information and up-to-date rates.