Most home buyers think that you need a large down payment to use a conventional loan, but this is actually not true.. Although FHA financing is common for first time property purchasers with small down payments, there are certain conventional financing choices with similar terms. This article describes MA 97 percent conventional loans.
Conventional Loan Details
Debt to Income Percentages
For any type of loan, underwriters will analyze your finances. Your total income and any active liabilities is especially important. They compare the two to come up with your debt-to-income ratio. The loan limit for which a purchaser is approved is calculated with that percentage not exceeding a certain percentage. For conventional loans, that ratio is actually less than FHA mortgages. This can make it harder for certain home buyers to qualify or could lead to a lower pre-approval amount.
Other Loan Eligibility
For people with low debt-to-income ratios and who fulfill other applicable requirements, conventional loans provide an easier underwriting process overall. Up-front and monthly mortgage insurance premiums will also be lower and may lead to dramatic savings. Be aware that not all companies have the same rules and fees.
Additional Information On MA 97 Percent Conventional Loans
Every loan option has unique features. The important thing is to understand what they are so you can make an informed decision on which alternative works best for you. It is important to seek advice from an experienced loan professional for detailed facts. Many offer pre-approvals free of charge. For assistance with finding a local home loan professional, contact John Montanaro at Renaissance Realty at 617-484-2494 or giam24@aol.com.
