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What do you know about conventional loans? If you’re preparing to buy a house and are starting to consider the different types of loans, it’s critical to know what you might not know. Here are three of the benefits of conventional loans that some mortgage counselors might not tell you.
Conventional loans typically require a down payment of 20% of the sale price of the home. When you put 20% down, you won’t need to carry mortgage insurance with most lenders. This will save you 1.2 to 1.75 percent on monthly mortgage payments.
Most loan programs allow you to finance the cost of the home and nothing else. If you need landscaping or renovations or furniture, you’re on your own. Some conventional loans can offer financing above what you pay for the house. You’ll have finance charges you’re responsible for, of course, but it gives you the financial flexibility to do what you need or want to do to your new home.
Are you considering buying a fixer-upper? Some loan programs don’t allow flexibility with appraisal and inspection standards and won’t approve a loan for a property that is in less-than-ideal condition. Lenders have some flexibility with conventional loans and can loosen the standards to allow for the purchase of a home that might not pass a traditional inspection.
Not everyone is super savvy when it comes to mortgages and homebuyer loan programs. That’s where a good mortgage lender comes in. Trust the knowledge and experience of Midland Mortgage Corporation to help you secure the conventional loan you need by contacting them today.