Conventional mortgages are one the most common type of mortgages. Because of this, conventional loans have more stringent controls on your credit score and your debt-to-income (DTI) ratio.
You can purchase a home with as few as 3% down on a conventional mortgage. You’ll also require at least a credit score of 620 to qualify for a conventional mortgage. You can jump getting private mortgage insurance (PMI) if you have at least a 20% down payment.
Nevertheless, a down payment of fewer than 20% means you’ll want to pay for PMI. Mortgage insurance rates are normally lower for conventional loans than other types of loans (like FHA loans).
Conventional loans remain a great choice for most borrowers who need to take advantage of lower interest rates with a larger down payment. If you can’t provide at least 3% down and you’re eligible, you could consider a USDA loan or a VA loan.
At America’s Best Lenders we help people find the lowest San Diego conventional mortgage rates in home loans by shopping from 48 top lenders that attend to the unique needs of our clients. Contact us today to learn more about our conventional mortgages and other home loans such as FHA, fixed-rate, adjustable rate and Jumbo among others.