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email: JacobSandoval@capitolmortgage81.com
 
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More Information

Conventional loans offer much more variety of loan terms than FHA, VA or USDA loans.
They offer either fixed rates from 10 Year Fixed to 30 Year Fixed Programs or adjustable rates. There are many pros and cons for conventional loans vs FHA, USDA, VA loans. Typically best program for borrowers with great credit scores and large down payments or lots of equity for refinances.
 
PROS:

-Lower monthly mortgage insurance when compared to FHA loans, the amount of monthly mortgage insurance depends on amount of down payment
 
-No upfront financed fees or upfront financed mortgage insurance, FHA has 1.75% MIP, USDA has 2% Guarantee fee and VA has funding fee between 1.25%-2.15% for first time use (may be waived in special circumstances.
 
-More fixed rate options. FHA, VA and USDA typically only offer 15 Year or 30 Year Fixed rate programs
 
 
CONS:
 
-Stricter credit requirements than other programs, minimum credit score is 620 plus other credit requirements where other programs offer programs with scores as low as 560 or borrower with no traditional credit or credit score
 
-Interest rates are typically higher than FHA, VA or USDA loans. However, since conventional loans have no upfront funding fees and lower monthly mortgage insurance than FHA loans, higher interest rates may not necessarily mean higher overall payment.

 
 
 

 

 

 

 

 

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