The most common type of real estate loan is called the conventional
loan. This program allows as little as a 3% down payment (First time
home buyer). The guidelines for a conventional loan are different than
for a FHA OR VA LOAN.
Each investor may have their own guidelines for underwriting the loan
. This means that they may have different criteria for approving a loan.
If the down payment is less than 20%, PMI (Private Mortgage Insurance)
may be required in order to close the loan. Private mortgage insurance
companies insure the lender for losses in case of a foreclosure. The
borrower pays the monthly premium in their payment.
Interest rates will vary slightly,
depending on the investor but mortgage companies traditionally have
slightly lower rates than banks and savings and loans. Programs
available will vary depending on the investor, but fixed and adjustable
rates are generally available. For program availability, call our
office at 951-352-2000.
