Conventional loan is the most popular Real Estate loan. Usually buyer borrows between 80% and 90% of the value of the home and pays the rest with cash at the closing.
Pros? Much easier to obtain than FHA or VA loan. Appraisal rules are not as strict. Basicly lender asks appraiser to evaluate home, not inspect it, so there should not be weird “safety or health issues”, unless there really are issues. It is much quicker process. And with putting down 20% or more, there is no mortgage insurance required. If you put down less than 20%, you will pay mortgage insurance until 80% is reached and then it goes away.
Cons? Larger amount of down payment required than with FHA or VA. And it is a little bit harder to qualify . FHA, VA is more forgiving with debt to income ratio.
SELLING REAL ESTATE ON TREASURE COAST SINCE YEAR 2000
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