The Pros & Cons of Conventional Loans


– Hey guys, Austin Schneider here, today we’re gonna give you the pros and the cons of a conventional loan. Pro number one is that the
conventional type of loan can be used on any type of property. Whether that’s your primary residence, whether that’s a rental property, whether you’re doing a
flip, it doesn’t matter. Con number one is that conventional loans typically require a higher down payment depending on your type of loan program that you’re going with. Pro number two is that there are a ton of different loan programs out there that could fit your needs. Whether it’s a HomeReady loan, or you’re a first time home buyer and there’s a particular
program out there for you. Con number two is that there’s typically higher interest rates
with a conventional loan. Because this isn’t
backed by the government, this isn’t a government sponsored program, the banks will be funding you and that’s how they’re
going to make the money. Pro number three of the conventional loan is that there are plenty of lenders that you can choose from. Unlike a government sponsored program mostly any lender out there can fund a conventional type of loan. And con number three is
of a conventional loan is because, again, this
is backed by a bank, by a financial institution, there are stricter credit guidelines if you are going to move forward with a conventional type of loan. All right guys, thanks
so much for watching. For more on a conventional loan visit us online at themortgagereports.com. Thanks so much for watching,
we’ll see you on the next one. (soft techno music)

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