Conventional Mortgage Loan in Pennsylvania

A Conventional mortgage is a home loan that isn’t guaranteed or insured by the federal government. Conventional mortgage loans are ideal for the majority of borrowers, providing financing for as much as 95% of the purchase price along with affordable fixed or adjustable monthly interest rates. With a personalized conventional mortgage plan from Mortgage America, qualifying borrowers can receive home financing with down payments as low as 3% of the purchase price.

The type of mortgage loan you use will affect your interest rate. However, your loan type hinges on your credit score. So these factors are very intertwined.

Conventional loans are great for first-time buyers and repeat buyers and can be used to purchase both primary residences and investment properties.

Note: For all down payments of less than 20% of the purchase price or appraised value, conventional mortgage loans must be insured by private mortgage issuers. Private mortgage insurance (PMI) protects lenders in case of homeowner default and should not be confused with mortgage life insurance, which protects borrowers. PMI is what makes low down payment financing possible for many. PMI can be removed once the homeowner builds enough equity in their home.