97 Percent Conventional Financing In Southern California

Conventional Home Loans

Many folks think that you must have a large down payment to obtain a conventional loan, but this is actually not the case.. Even though FHA loans are common for first time property purchasers with small down payments, there are other conventional loan alternatives with down payments as little as 3%. This blog explains 97 percent conventional financing in Southern California.

About Conventional Loans

Income and Debts

When qualifying for any type of loan, mortgage companies will evaluate your financials. Your predictable income and any active debt is particularly important. The two are compared to determine your debt-to-income percentage. Normally, total debt-to-income ratio (with the estimated amount of the new loan) must not exceed a certain amount. For conventional loans, that percentage is lower than FHA loans. This can make it tougher for certain home buyers to qualify or might lead to a lesser pre-approval amount.

Other Loan Eligibility

For people with sufficient debt-to-income ratios and who fulfill other applicable criteria, conventional loans offer an easier underwriting process overall. Mortgage insurance costs may also be lower and may result in useful savings. Keep in mind that not all lenders have the same criteria and fees.

More About 97 Percent Conventional Financing In Southern California

Different loan plans offer different advantages and disadvantages plus closing expenses and monthly installments. The important thing is for you to be aware of the facts in order to make an educated decision on which option is the best choice for you. It is valuable to speak with a local loan professional for accurate details. Many provide free pre-approvals and estimates. For help with finding a local mortgage broker, contact Matthew Rapoport at Homes Inc. at (213) 334-4141 or [email protected]