Home Buying 101: Conventional Mortgage

The Conventional Mortgage

This type of mortgage is another common mortgage. It usually is for people that have saved up at least 5%, 10%, or 20% as their down payment. At 20% down, there is not a requirement for having private mortgage insurance (PMI). But more recently, there are 3% down products available as well. This is a great alternative to the FHA mortgage

Pros:

  • 20% down usually waives Private Mortgage Insurance

Cons:

  • Harder to qualify for than FHA, may need higher credit score
  • Requires higher down payment, usually 5%, 10%, or 20%, but there are some 3% down payment programs available