With the multitude of government-insured mortgage programs available, some Brownsville home buyers overlook conventional loans backed by private lenders. But the truth is, this type of mortgage is among the most flexible, and the numerous options mean that conventional financing works well for many southern Texas borrowers.
Conventional mortgage loans are available with a down payment of as low as three percent of a home’s purchase price – and while putting down less than 20 percent means paying private mortgage insurance, that obligation goes away after building up that much in home equity. Conventional financing also requires less paperwork, so borrowers can look forward to fast underwriting, getting the keys to their dream home without the delays that are common with government-backed mortgage programs.
In addition, conventional loans feature much looser property restrictions. While mortgage lenders might not offer financing for a home that’s clearly unsafe, most only require an appraisal, not an inspection. Also, qualified Texas residents aren’t limited in the amount they can borrow to buy a home. With fixed-rate and adjustable-rate options and varying term lengths, a conventional loan can be an attractive solution.
As a general rule, conventional mortgages have relatively strict credit standards and lending requirements. The experienced professionals at PRMI can help you determine if a conventional loan is your best bet for buying your dream home. Contact us today!