Conventional Loans

Conventional Loans in Greenville, CT

You have two broad options when you want a mortgage: a government-insured loan like an FHA loan or VA loan , or a conventional loan. Conventional mortgages are not backed by the government, but rather insured by private companies.

As conventional mortgages in Greenville, CT are not backed by the government, they are viewed as a higher risk and thus have higher standards you must meet to be approved. Conventional mortgage lenders have higher income and credit guidelines, but they offer a range of advantages to borrowers.

Conventional Home Loans Greenville, CT

Advantages of a Conventional Mortgage in Greenville, CT

Conventional home loans in Greenville, CT are usually the best choice if you have excellent credit and can put down at least 20% on your loan. Conventional mortgages are very flexible, as they can be used to buy not only a primary residence, but also an investment property or a vacation home. This is unlike VA loans and FA loans which can only be used to buy your primary residence. Conventional home loans can have a term of anywhere from one to forty years, and either a fixed or adjustable interest rate.

There are many important benefits to choosing a conventional loan in Greenville, CT over a government-backed loan including:

  • Much lower fees than FHA mortgages.
  • Private mortgage insurance (PMI) is only required when you put down less than 20%.
  • PMI, if necessary, can be removed as soon as you build enough equity, unlike FHA loans.
  • Down payments as low as 3% for well-qualified borrowers.
  • Loans typically close faster.
Benefits of Conventional Mortgages Greenville, CT

Qualifications for a Conventional Loan in Greenville, CT

Conventional loans have stricter requirements than government insured loans. General guidelines for getting approved include:

  • Down payment as low as 3% (or 20% to avoid PMI)
  • FICO score of 740 or higher
  • Monthly housing costs should not exceed 28% of your gross (pre-tax) monthly income
  • Monthly debt should not exceed 36% of your gross monthly income
  • Must be discharged from Chapter 7 bankruptcy for at least 4 years and reestablished credit

If you qualify for a conventional mortgage in Greenville, CT, it is most likely a better option for you than an FHA mortgage. FHA loans, unfortunately, have become more costly over the last few years due to increasing insurance premiums.

Qualifications for a Conventional Loan in Greenville, CT

Conventional Loan vs

Government Insured Loans in Greenville, CT

When you are deciding between a conventional and government insured mortgage such as FHA or VA, think about what is most important to you. If you have excellent credit and the ability to put down 20%, a Greenville, CT conventional mortgage will save you more in the long run. If you want to pay less up front and get a higher monthly mortgage payment, you may prefer a government-backed mortgage.

Conventional Loan vs Government Insured Loans in Greenville, CT

If You Gotta Get A Mortgage, Call Summit Funding Today!