Conventional Home Loans
Repeat and first-time home buyers in the Pharr area have the choice of several lending programs. VA, FHA, or USDA financing is ideal for some, but conventional mortgages granted by private lenders offer a few advantages over government-backed mortgages. And after reviewing the various borrowing options, many Texans – more than half – go with conventional financing through a qualified mortgage company.
Compared to federally insured home loans, conventional loans offer more flexibility. Borrowers can opt for adjustable-rate or fixed-rate mortgages, and lenders offer competitive rates and a range of term lengths. Well-qualified home buyers can often get a mortgage for any amount, and a conventional loan can be used to finance the purchase of a second home, multi-unit dwelling or investment property.
In addition, conventional financing gives home buyers the opportunity to put less money down on a property – for those who qualify, the down payment can be as little as three percent of the purchase price. Private mortgage insurance is required, but after reaching 20 percent in home equity, either through the down payment or over the course of time, the obligation ends.
Conventional mortgages aren’t backed by a government agency, and without that protection, mortgage loan lenders tend to impose stricter income and credit standards. However, a steady income, a reasonable debt-to-income ratio and a decent credit history is generally all it takes to qualify. To see if a conventional loan is the means to getting the keys to your dream home in Pharr, Texas, contact a mortgage lender at PRMI today!