Everything You Should Know About Conventional Loan

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Everything You Should Know About Conventional Loan
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• Conventional loans are so common that you've
  probably heard of them before. They may even have
  been recommended to you by your lender!But how
  do they work? What are the pros and cons of their
  loan option compared to the rest? Here's what you
  need to know about conventional loans so you can
  make an informed decision.

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What Is a Conventional Loan?

• In contrast to government-guaranteed mortgages,
  conventional mortgage loans are not backed by the
  government. In most cases, however, private
  lenders back the loan and the borrower is
  responsible for covering its insurance.
• Government-sponsored financing is rarer than
  conventional loans. By a wide margin,
  conventional loans made up 74 of all new home
  sales in the first quarter of this year.
• The federal government does not insure
  conventional loans, so they are riskier, though
  they offer more flexibility.

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How do Conventional Loans and Government Loans
iffer?

• Understand the difference between conventional
  and government-backed loans when thinking about
  your mortgage options.
• Veterans are able to get VA loans, which are
  government-backed, as well as FHA loans, which
  are offered by the Federal Housing Administration
  (FHA). In addition to FHA funding, VA loans are
  guaranteed by the Veterans Administration.
• You must pay MIP (mortgage insurance premium)
  with an FHA loan. 3.5 down is required. You may
  be liable for loan defaults if the FHA makes
  money from MIP.

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A Conventional Loan How Do You Qualify?

• Meeting with a lender is the first step to
  qualifying for a conventional loan. If you're in
  the home-buying process, we recommend you contact
  Pierpoint Mortgage, one of the best mortgage
  companies Los Angeles, when you plan to meet with
  a lender. A lender will ask for documentation
  like recent pay stubs, tax returns, and bank
  statements. Mortgage lenders want to be sure you
  have a steady income and can make your monthly
  mortgage payments on time.
• Conventional loans require a down payment as
  well. With a conventional loan, you can put only
  3 down, but we recommend a minimum of 10. You
  could avoid PMI by paying 20, though!

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Conventional Loans Have Several Benefits

• Private mortgage insurance (PMI) reduced to 3
• Quick loan approvals
• Different down payment options, starting at 3 of
  the purchase price
• Fixed-rate mortgages ranging from 10 to 30 years
• Fixed-rate mortgages ranging from 10 to 30 years

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Contact Us

• PierPoint Mortgage
• 1 323-986-4400
• 3680 Wilshire Blvd Los Angeles, CA 90010, United
  States
• frontdesk_at_pierpointmortgage.com
• https//pierpointmortgage.com/locations/mortgage-b
  roker-california-los-angeles/