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Posted on Nov 6, 2020

Community Mortgage

Is a San Diego Conventional Home Loan right for the first-time Home Buyer?

In the world of finance, the most common types of mortgage loans are conventional home loans. Private financial lenders usually fund these loans and then sell them to Fannie Mae and Freddie Mac (government-sponsored corporations). Compared to FHA and VA home loans, conventional loans involve stricter requirements. Furthermore, you’ll have to have a higher credit score and a lower DTI (Debt-to-Income) ratio than you would with those other loans.

Benefits of Conventional Home Loans

You can get a conventional loan with as little as 3% down. However, if you put down a minimum of 20%, you won’t have to pay for PMI or Private Mortgage Insurance. You can usually borrow more with a conventional loan that with an FHA loan. In most cases, interest rates are usually lower with a conventional home loan than other loans.

Is a Conventional Loan a good fit for You?

If you have very little debt and a strong credit score, a conventional home loan is a good option when buying your first home. Plus, you can avoid paying PMI (Private Mortgage Insurance) by putting 20% down up front. This will help to lower your monthly mortgage payments as well.

Community Mortgage
814 Morena Blvd #310
San Diego, CA 92110
(619) 692-3630
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