Conventional & FHA
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 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 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) or a Mortgage Insurance Premium (MIP) added to your payments, but that goes away after a certain period of time. There are a slew of programs association with Fannie and Freddie conventional mortgages. They also offer renovation mortgages.