Month: March 2023

A conventional mortgage is a type of home loan that is not insured or guaranteed by the government, unlike FHA, VA, or USDA mortgages. Instead, conventional mortgages are backed by private lenders, such as banks and mortgage companies, and conform to the guidelines set by Fannie Mae and Freddie Mac, the government-sponsored entities that buy and sell mortgages in the secondary market.

Conventional mortgages typically require a higher credit score and a larger down payment than government-backed loans, but they offer more flexibility in terms of loan amount, property type, and borrower qualifications. Conventional mortgages can be used to purchase primary residences, second homes, and investment properties, and are available in fixed-rate and adjustable-rate options.

In addition, conventional mortgages may require private mortgage insurance (PMI) if the down payment is less than 20% of the home’s value. PMI protects the lender in case the borrower defaults on the loan, but it adds an additional cost to the monthly mortgage payment.

Overall, conventional mortgages are a popular option for borrowers who have good credit, sufficient income, and a substantial down payment, and who are looking for a flexible, customizable home loan that meets their specific needs. Contact us at Valiant Mortgage today to get pre-approved for a conventional mortgage.

There are several reasons why someone might choose to use a mortgage broker:

1. Access to a wider range of lenders: Mortgage brokers typically have relationships with a variety of lenders, including banks, credit unions, and other financial institutions. This means they can help you find a loan that meets your specific needs, even if you have unique financial circumstances.
2. Save time: Applying for a mortgage can be a time-consuming process, involving lots of paperwork and research. Mortgage brokers can help streamline the process by doing much of the legwork for you.
3. Expert guidance: A good mortgage broker can guide you through the mortgage process, explaining the different types of loans available, and helping you understand the pros and cons of each option. This can be especially helpful if you’re a first-time homebuyer or if you’re not familiar with the mortgage process.
4. Potentially lower costs: Mortgage brokers may be able to negotiate better rates and terms on your behalf, which can save you money in the long run.
5. Personalized service: Mortgage brokers can provide personalized service and support throughout the mortgage process, answering your questions and helping you make informed decisions. They can also help you navigate any challenges that arise during the process, such as credit issues or income verification problems.

Overall, a mortgage broker can be a valuable resource for anyone looking to secure a mortgage, whether you’re a first-time homebuyer or a seasoned real estate investor. Don’t wait and reach out to a Valiant Mortgage loan officer today!

The down payment required for a mortgage will depend on several factors, including the type of loan you are applying for and the lender’s specific requirements. Here are some general guidelines for down payments on common types of mortgage loans:

1. Conventional loans: Most conventional loans require a down payment of at least 3% to 5% of the purchase price. However, if you have a credit score of less than 620, you may need to make a larger down payment.
2. FHA loans: FHA loans, which are backed by the Federal Housing Administration, require a minimum down payment of 3.5% of the purchase price.
3. VA loans: VA loans, which are available to eligible veterans and active-duty military personnel, do not require a down payment.
4. USDA loans: USDA loans, which are designed to help low- to moderate-income borrowers in rural areas, do not require a down payment.

Keep in mind that making a larger down payment can have benefits, including lower monthly payments and potentially better interest rates. However, if you cannot afford a large down payment, there are still options available to you. Be sure to talk to your Valiant Mortgage loan officer to ask about all your options.