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Here's the Scoop on Conventional Loans
Mortgages not backed by a government agency (such as FHA) are known as conventional loans. Such mortgages can have either fixed or adjustable rates, and usually require a down payment of 20% or more.
Since the loan isn’t insured by the government, the lender is essentially taking on a greater risk if you as the borrower were not able to repay the loan. Because of this, home buyers with low credit scores wouldn’t normally qualify for conventional loans; lenders need more assurance that the...
Related topics : credit loan mortgage score / low credit score loans / conventional loan
When Do You Need a Co-signer?
A co-signer's income, assets and credit worthiness are taken into account to help qualify you for an FHA mortgage, and that person is liable to repay the loan as well. A co-signer, however, has no ownership interest in the house.
Having a co-signer comes with benefits and risks. Having someone with a substantial credit history co-sign on the home loan can help you get a mortgage with the best interest rates. It also benefits the person co-signing, as regular monthly payments reflects well on...
Related topics : mortgage loan rate of interest / mortgage rate home loan
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