Conventional Loans
A Michigan Conventional mortgage loans allow first time home buyers to purchase their new home with only a 3% down payment. If you have owned a home in the past 3 years, the minimum down payment will be 5%. Conventional loans are the most common type of mortgage. Typically, you will need a good credit history and a lower debt to income ratio.
Features
- 3% to 5% minimum down payment. Your entire down payment can be a gift from an immediate family member.
- Seller can pay 3% – 9% of the sale price towards your closing costs (depending on your down payment).
- Mortgage insurance varies depending on credit score, down payment, and debt to income ratio. Don’t worry! We shop all the major carriers for your best rate and have options that eliminate PMI altogether.
- Conventional loan amount is limited to $510,400.
- No geographic restrictions.
- PMI automatically cancels when you owe 78% of the original purchase price (based on a standard amortization schedule).
- Investment properties allowed with a minimum of 15% down payment.
General Qualifying Requirements
- Credit score minimum of 620.
- No foreclosure in the past 7 years.
- No bankruptcies in the past 4 years. Must have rebuilt credit.
- All court ordered judgments MUST be satisfied or have a satisfactory payment history.
- Condominiums must meet Fannie Mae or Freddie Mac requirements.
Let’s Work On Getting You That Dream Home
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