Why are Conventional Loans Preferred by Sellers More Than Other Home Loans in Fort Lauderdale? Conventional home loans are considered the ideal financial instrument for borrowers that can afford a 20% down payment on a home and have a credit score between 620 and 740. If the down payment is less than 20%, the borrower will be required to pay PMI or private mortgage insurance. Furthermore, their DTI or debt-to-income ratio should be less than 43%. Granted, there are exceptions to the rules where first-time homebuyers are concerned such as down payments as low as 3% and lower credit scores. So why do sellers prefer that buyers finance the home with a conventional loan rather than another type? Many sellers prefer conventional loans because of their own personal views. This type of loan requires a higher credit score and a higher down payment which many sellers deem these as the characteristics or a trustworthy individual and a lower default risk. In addition to this, there are three advantages or benefits of buying a home with a conventional loan including: ● decreased chance of the buyer requesting that repairs be done ● fewer appraisal discrepancies ● quicker closing times than FHA or VA loans While it’s important to take the above factors into consideration when applying for a conventional home loan, speaking to an experienced and reputable lender or mortgage broker is even more important. https://www.google.com/maps?cid=5464149498827190981