When you apply for a home loan, you have the option of choosing between a government-backed mortgage, like an FHA loan, or a conventional mortgage. Rather than being insured by the federal government, conventional mortgages are insured by a private company.
Because they do not have government backing, conventional home loans are a higher risk, which means you can expect stricter income and credit requirements. If you qualify, conventional loans offer many advantages, and they are often more affordable.
Conventional mortgages are often the best choice for borrowers who have excellent credit and a down payment of at least 20 percent. These loans can be used to buy a primary home, second home or investment property, unlike FHA or VA loans, which may only be used for a primary home. Conventional loans are available with many terms ranging from one year to 30 years, and they are available as a fixed-rate or adjustable-rate mortgage.
The advantages of a conventional mortgage include:
Keep in mind, conventional mortgages are usually harder to obtain than a government-backed loan.
We will want to see the following:
If you qualify, there is a good chance a conventional loan is a better option than an FHA loan. FHA loans have become much more expensive over the last few years with rising mortgage insurance premiums.
If you are trying to choose between a government-insured mortgage and a conventional home loan, it can help to think about your priorities. If you have great credit and can put down at least 20 percent, the conventional loan option will save you more money. If you want to pay less up front in exchange for a higher monthly payment, a government-insured loan may be a better choice.
Mortgage Investors Group, based in Tennessee, offers residential financing in a number of states in the southeast, See MIG Service Areas. Terms and conditions to apply to home financing. We want to share with you the loan terms vary based on several characteristics and your financial profile. These include but are not limited to loan program, loan purpose, occupancy, credit history, credit score, assets, and other criteria per loan type. The repayment terms and interest rate may vary from time to time. The terms represented here are based on certain assumptions outlined below and/or noted on the loan outline page. Additional details concerning privacy, program disclosures, licensing specifics may be found at migonline.com Legal Information.MIG Loan Officers will help gather the information needed for an individual assessment to provide home financing which matches the loan characteristics with your home financing needs based on your financial profile, when you are ready to begin a full loan application. For estimates and general information before that step, the basis for which the mortgage financing information are as follows:
An MIG Loan Officer is available to help with your financial details to determine which characteristics apply to your situation for a personalized look into which loan program best fits your home financing needs. Please use the Find a Loan Officer link or reach out to Mortgage Investors Group at 800-489-8910. Equal Housing Lender 1.2020