Conventional mortgages are the most common type of home loan in the U.S. today. If you have a good credit score and a sizeable down payment, you can likely get a good interest rate on a conventional mortgage. PRMI McKinney, a respected mortgage lender in Texas, is here to help you with your application for a conventional mortgage.
To qualify for a conventional mortgage in McKinney, Texas, borrowers need a credit score that is at least in the 600s, but a higher credit score makes it easier to qualify, and may also net you a lower interest rate.
The more you have saved for a down payment for your new home, the better the interest rate you can get for your conventional mortgage. If you can put down 20% of the purchase price, you can avoid paying private mortgage insurance on your home loan. PMI is a monthly fee some borrowers have to pay to protect the mortgage lender until they reach 20% equity in the home. Some other home loan programs don’t require borrowers to pay PMI, but you must be below a certain income threshold to qualify for these. Some borrowers with high credit scores may qualify to put down as little as 3% with a conventional mortgage.
Government-backed loans are usually reserved for primary residences, but you can get a conventional mortgage for any type of property, such as an investment property, vacation home or second home.
To find out if you qualify for a conventional mortgage, contact the mortgage lenders at PRMI McKinney today. We can help you fund the home of your dreams.
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