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loans (up to $424,100)
|Conventional/conforming loans are
the most common loan programs available. They come in many
different forms but are limited to loans of up to $424,100.
The most favorable terms are available if you have at least a
20% down payment. There are conforming loans that are
available with as little as 5% down. Anything less than
20% down will require private mortgage insurance (PMI) from the
Lender paid mortgage insurance (LPMI) programs offer a
slightly higher interest rate, however in exchange the lender
pays your mortgage insurance in advance for you. Often this will
give you initially lower payment. One possible negative compared
to paying PMI monthly is that your payment for principle and
interest will always stay the same with an LPMI program, if you
pay monthly PMI your payment will eventually go down (when the
PMI is no longer necessary on the loan).
In many cases these programs can save you money, although not
all. We'll typically evaluate both programs (with and
without PMI) to see which one saves you money.