A conventional loan is a mortgage that isn't backed by a government agency. These loans offer competitive rates and flexible terms, making them a popular choice for homebuyers with good credit and stable income in Colorado Springs. With down payment options as low as 3% and no upfront mortgage insurance required with 20% down, conventional loans provide an attractive path to homeownership.
Benefits
- ✓Lower down payment options available
- ✓Competitive interest rates
- ✓No upfront mortgage insurance with 20% down
- ✓Higher loan limits than FHA loans
- ✓Flexible property types eligible
- ✓Multiple term options available
Requirements
- •Good credit score (typically 620+)
- •Stable employment history
- •Debt-to-income ratio under 45%
- •Down payment (as low as 3%)
- •Property appraisal required
- •Income and asset documentation
Understanding Conventional Loans
Conventional loans are ideal for borrowers with good credit and stable income. These loans follow guidelines set by Fannie Mae and Freddie Mac, offering competitive rates and flexible terms. Unlike FHA loans, conventional loans don't require upfront mortgage insurance with a 20% down payment.
Loan Options:
- Fixed-rate mortgages (15, 20, or 30 years)
- Adjustable-rate mortgages (ARM)
- Jumbo loans for high-value properties
- Low down payment options (as low as 3%)
David Jeffrey will help you understand your options and choose the best conventional loan program for your specific situation. He'll guide you through the entire process, from application to closing.
Private Mortgage Insurance (PMI)
If your down payment is less than 20%, you'll need to pay private mortgage insurance (PMI). However, unlike FHA loans, PMI can be removed once you reach 20% equity in your home. This can lead to significant savings over the life of your loan.
Ready to Get Started?
Contact us today to learn more about our conventional loan options. David Jeffrey will help you find the right loan program for your needs and guide you through the application process.