Buying your first home can be an exciting experience. And while there’s a lot of pieces to understand, the process doesn’t have to cause anxiety. One piece to consider is the type of mortgage loan you want. A conventional loan can save a significant amount of money throughout the term of your mortgage. Nearly 60% of all applicants will be eligible for a conventional loan. Having the available funds, good debt-to-income ratio, and proper credit score are all important when applying for this type of mortgage.
Benefits of a Conventional Loan
A conventional mortgage comes with an array of benefits. When compared to other types of home loans, conventional loans boast lower interest rates. They also help you avoid paying costly mortgage insurance premiums. They tend to be more flexible in terms of repayment options and offer better payment plan options than other types of loans should you find yourself struggling financially.
If you’re looking to secure a second home or a retail property, a conventional home loan may be one of your only options. If this sounds like something that interests you, let Mortgage Matt and the experts at Megastar Financial Redding help you get started today!
Conventional Loan 101
A conventional home loan is one that is not secured or offered by a government entity. Here are some facts about this type of loan.
- Conventional loans require as little as 5% down.
- It’s important to remember that if you put down less than 20%, you’ll be required to pay a mortgage insurance premium.
- Rates for this type of loan are available in adjustable rates, fixed rates, and offer terms ranging from 10 to 30 years.
- If you have enough equity in your home, around 78%, you can request the removal of mortgage insurance on your home.
If you’re still wondering if a conventional home loan applies to your current situation, give one of the experts at MegaStar Financial a call. We’ll be happy to go over the details with you and help you determine which type of loan and financial program best fits your needs. Come by or reach out by phone to discover why we are trusted by the homeowners of Redding, California for their conventional loan needs.
Income and Property Location Eligibility
The experts at MegaStar Financial are the trusted providers of USDA home loans in Redding, California. If you’re searching for a loan that works for you, let our experts help you find a loan that will best fit your needs. Can’t make it to the office? Reach out by phone at 530-999-9000.