Conventional Loans (Low Money Down) in Albuquerque
Conventional loans are mortgages not backed by the government and are offered by private lenders like banks, credit unions, and other financial institutions. These loans typically have a fixed interest rate that stays the same throughout the loan’s lifetime and requires borrowers to have good or excellent credit scores. Infiniti Mortgage can help Albuquerque home buyers determine if they qualify for a conventional loan that can help them quickly build equity. If you’re looking for a trusted brokerage with years of experience in conventional loans, Infiniti Mortgage is the right choice for you.
What is a Conventional Loan?
Conventional loans can be obtained through private mortgage lenders, including banks, credit unions, online lenders, and mortgage brokers. Mortgage brokers can help borrowers compare rates and terms from multiple lenders, finding the best rates possible for borrowers. This type of mortgage can be used to purchase a primary residence, second home, or rental property, and can help borrowers build equity through their residences.
Advantages of a Conventional Loan
The biggest advantage of conventional loans is that they do not require private mortgage insurance (PMI). PMI is a fee that many homeowners must pay when they have a low down payment or a high debt-to-income ratio. PMI can be canceled once you build up 20% equity in your home, saving you money. Another great advantage of conventional loans is that they are widely available and their interest rates can be negotiated as they are either fixed or adjustable.
Infiniti Mortgage has expert brokers ready to discuss your needs and wants when looking at conventional loans. We’ll help you determine if a conventional loan is right for you, and assist you in obtaining your loan.
Conforming Vs Non-Conforming Conventional Loans
Conforming conventional loans have maximum loan amounts established by the Federal Housing Finance Agency, which also sets standards for credit score and debt-to-income ratio eligibility. Non-conforming conventional loans have less standardized requirements and can be harder to qualify for.
Either way, qualifying for a conventional loan is straightforward if you have sufficient income, good credit, and a substantial down payment. You’ll also need to be prepared to pay for private mortgage insurance, which protects the lender if you default on your loan.
Obtaining a Low-Interest Rate
One advantage of conventional loans is the ability to obtain a lower interest rate by negotiating with a lender. This is where the experienced brokers at Infiniti Mortgage in Albuquerque can help. We’ll assist you in figuring out if you’re qualified for this type of loan and contact lenders to negotiate the lowest interest rate possible for you. We’re dedicated to providing our clients with high-quality loan services to ensure you’re getting the lowest interest rate for the home you’ve been looking at.