The Advantages of Conventional Home Loans in Tustin When it comes to mortgage loans, there is no one-size-fits-all option that works for everyone who wants to purchase a home. So, it’s important to understand that there are advantages and disadvantages of each one. However, here are 3 benefits of conventional loans that make them worth considering when buying a home: Higher loan limits – although conforming loans have set limits, you can have a higher limit with a jumbo conventional loan if needed. There’s no guarantee that you’ll have that kind of flexibility with a government-backed loan. Increased flexibility for some – private mortgage lenders benefit from the increased flexibility of conventional loans than they do with loans that are insured by the Federal Government. This is due in part to the fact that they aren’t required to follow the guidelines that have been set by the government. Lower loan costs – the higher your credit score, the easier it is to obtain a lower interest rate. Furthermore, once your loan-to-value or LTV ratio reaches 80%, you can request that private mortgage insurance (PMI) be removed. Conversely, the mortgage insurance premiums that are attached to FHA loans and the guarantee fee on a USDA loan may remain in place throughout the terms of those loans. https://www.google.com/maps?cid=1333114653028728311