Millennials continue to show a strong preference for Conventional Loans
But are alternate options a better choice?
A Conventional Loan is a mortgage that is not backed by a government agency such as the Federal Housing Administration or the VA. Most conventional loans are issued by private lenders then sold to Government Sponsored Entities. Conventional loan requirements include credit, occupancy, property type, income, assets and down payments from 5% to 20%.
But is a Conventional Loan the best choice for a millennial homebuyer?
Alternative loans such as FHA loans require smaller down payments and may be easier to qualify for should the purchaser have a lower credit score. And with just around a 3.5% down payment requirement, millennials on a budget may find an FHA loan a more attractive menu item.
Know a millennial that needs some direction on the best mortgage option, contact Dwayne Stein at 985-612-1900. He will be more than happy to steer them on the right course toward the best option.