Episode 008 1995 - 96 Season
| House Wrap | Fiberglass Wall Insulation | Sun Tunnel Skylights | Accessorizing (design) | Building with Bricks | Conventional Loans | |
To order a Video Tape, call 1-800-TO-BUILD and ask for Episode #008.
Michael Holigan: This week we're going to continue talking about mortgage programs. Now we've talked a little bit about FHA. We've talked a little bit about VA. Today we go to the most popular one, that's conventional loans. There's a million out there. Everybody can do 'em, lot of advantages. Let's take a quick look. What are the advantages? Easier to process, much less paper work. This is not guaranteed by the government like a VA and it's not ensured by the government like and FHA so there's much less paperwork, much quicker. Readily available - again, since everybody can do 'em and there's so many of them out there, it's easy to get to. Look at all the different people that can, banks and savings banks, mortgage bankers, mortgage brokers. When I became a mortgage person myself, it was very easy to get conventional loans, took a little bit longer to get approved for VA and FHA, much, much easier. Large variety, whatever you want - adjustable rate mortgages, balloons, graduated payment mortgages, anything you need, they've got it in conventional. If they don't have it, some investor's going to write one up for you and invent that type of loan. They're always looking to lend money out in different ways they can do it. Disadvantages: larger down payment. Since this is not insured by the government and it's not guaranteed by the government, you can expect to put a little more money down, they're going to want to see a little more equity. Private mortgage insurance: any time you have a low down payment below 20%, 5% to 10%, anything less than 20%, you're probably going to get stuck with some mortgage insurance. That happens on these. Tougher underwriting requirements than FHA or VA. Again, since it is not guaranteed, it's not insured, it is going to be harder to get, the ratios are lower, it's going to be a tougher loan, but they are some neat loans, some specialty programs. If you're looking for something different, call you lender, ask about conventional loans.
Episode 008 1995 - 96 Season
| House Wrap | Fiberglass Wall Insulation | Sun Tunnel Skylights | Accessorizing (design) | Building with Bricks | Conventional Loans | |
To order a Video Tape, call 1-800-TO-BUILD and ask for Episode #008.