Conventional home loans are a popular choice for San Antonio home buyers, as these mortgages have a number of attractive features. The same could be said of home loans backed by the VA, FHA, or USDA, of course, but conventional mortgages have much to offer – and it can be the best mortgage solution.
Compared to government-backed loans, conventional mortgages come with more flexible lending terms. Borrowers can choose from a broad array of term lengths, and lenders offer both fixed-rate mortgages and adjustable-rate financing. Faster mortgage company processing is another feature of conventional loans, and for qualified south-central Texas home buyers, there’s no maximum loan amount.
With a conventional mortgage, you can finance the purchase of a primary residence, second home, multi-unit rental or investment property – and you might only need a down payment of three percent. Private mortgage insurance will be required if you put down less than 20 percent, but only until your principal loan balance drops below 80 percent of the property’s value.
Because conventional mortgages aren’t insured by a government agency, mortgage loan lenders look for borrowers who pose little risk of defaulting. Qualifying means meeting stricter income and credit standards, but if you have a steady income, a low debt-to-income ratio and a good credit history, taking out a conventional loan can be the most cost-effective approach to becoming a San Antonio homeowner.
To find out if that’s the case, get in touch with the mortgage lender specialists at PRMI today.