Conventional & FHA

Conventional & FHA Mortgage Loans: These are the most common types of mortgages offered and are the main mortgages that fall under the definition of a “Qualified Mortgage”. These are the easiest mortgages to get closed because they offer automated underwriting and are the most mainstream, which means there is a lot more technology and support for them. 99% of all Mortgage companies offer these, and they are typically the largest percentage of our business at PS Mortgage Lending.

Conventional Mortgages are Fannie Mae and Freddie Mac mortgages, and usually require a larger down payment than the Government Insured Federal Housing Administration (FHA) mortgages, unless you are a first time homebuyer and you can put 3% down with Conventional. If you have less than 20% down payment, then you will have Private Mortgage Insurance (PMI) on conventional loans or a Mortgage Insurance Premium (MIP) on FHA loans added to your payments. The Conventional Mortgage Loan PMI goes away after a certain period of time, but the FHA MIP never goes away for life, if you put less than a 10% down payment on the purchase. There are a slew of programs associated with Fannie and Freddie conventional mortgages. They also offer renovation mortgages.