Skip to main content

School is in Session! The Benefits of Conventional Lending vs FHA

School is in Session!  
The Benefits of Conventional Lending vs FHA 

     Mortgage Insurance is required on loans where a 20%
down payment is not available from the Buyer/Borrower.   

     Since most all Conventional Loans in the traditional marketplace require a minimum of 5% down, (Note: I said 5%. You don't need a 20% down payment!) I'd offer that the statistics below show that Lenders are improving at getting this info out and educating potential Buyers.

     Consider the following statistics:
  • The volume of loans closed in the 3rd Quarter of 2014, WITH Private Mortgage Insurance, was UP nearly 30% from the previous quarter  
  • Nearly 40% of all loans closed and sold to Fannie Mae/Freddie Mac in the 3rd Quarter of 2014 involved Mortgage Insurance, was up nearly 10% from just a-year- and-a-half ago

     What you can assume from this info is:
  1. More Buyers are aware that you don't need 20% down (Great news!
  2. Private Insurers have loosened up their guidelines
  3. More transactions have moved from what may have previously been a FHA Loan ... to Conventional (Perhaps as a result of FHA's Mortgage Insurance becoming too "pricey") 
     Item #3 above tells me that individual Mortgage Lenders are successfully illustrating to their Borrowers the benefits of putting 5% down, versus FHA's 3.5% down.  Those benefits include the ability to save costs upfront:  
  • At Closing, FHA charges 1.75% times your loan amount for their coverage
and monthly: 
  • FHA also charges a higher monthly rate than most all Conventional Loans with Mortgage Insurance

     It also tells me that the number of eligible properties (Condos, homes in disrepair, etc.) is shrinking in terms of being FHA-financeable.

     While FHA remains a very viable First-Time Homebuyer option, and for some scenarios, a Buyer's only option, these numbers and statistics prove that some positive things are happening in the "private" side (Non-Governmental) of financing.  Something that the majority have been hoping for since the "tightening" began in 2009.

 *   Looking to Buy, Build, or Refinance a home in a Lincoln-Way Community, Will County, or elsewhere in the Chicagoland area?  Contact Me today!  I'll put my 37 years of mortgage experience hard to work on your behalf.
     I can be easily found at:
Direct:  815.524.2280
Cell/Text:  708.921.6331
eFax:  815.524.2281

  Twitter Account of Gene Mundt, Mortgage Lender   LinkedIn Account of Gene Mundt, Mortgage Lender   Facebook Acct. of Gene Mundt, Mortgage Lender   Pinterest Acct. of Gene Mundt, Mortgage Lender   Digg Acct. of Gene Mundt, Mortgage Lender
 Trulia Acct. of Gene Mundt, Mortgage Lender   Zillow Acct. of Gene Mundt, Mortgage Lender    Klout Acct. of Gene Mundt, Mortgage Lender    Gene's Chicagoland Blog/Gene Mundt, Mortgage Lender 
Gene Mundt, Mortgage Lender, a Lender with 36 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking:  Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including:  The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL


Popular posts from this blog

Property Addresses: Gettin' Down to the Nitty Gritty

Property Addresses:   Gettin' Down to the Nitty Gritty

Take just a second and read through the following statements ...

“The devil is in the details” 
... "in life, it is often the tiny details that end up 
being the most important"

"Get Down To The Nitty Gritty"

“Little details have special talents in 
creating big problems!” 

“Sweat the details”

"Success is the sum of details"

Details ...Details ... it's all about the details ...
     And I'll admit it, I'm a bit of a nerd about them.  My whole family is.  Details, the intricacies, the little things ... they matter to us.
When I was growing up, a typical conversation (and argument) between my brothers and myself at the dinner table or in the backyard centered around "details".  It didn't matter what the topic was, it was the minor differences ... the details about the topic ... that we argued about.  I'm sure we drove our parents crazy.  
Sports statistics and games ... minutiae rega…

Ready for Fall? It's Arriving Soon

Ready for Fall?  It's Arriving Soon

Friend ...

Maybe it's because football season has started. Maybe it's the kids being back in school. Or because the night air is cooler. But a sense of Fall has arrived here in Chicagoland ...

The Fall Season brings changes with it. Changes in temperatures. Changes to the clothing we wear. Our focus seems to shift with the coming of shorter days, falling leaves, and crisp air.

Fall can be the perfect time to do a multitude of things. You can prep your home for the upcoming winter weather ... or for Fall listing and sale. 

But whether you're moving on or staying put, Fall is a great time to declutter and organize your home inside and out ... and your finances too.

I've googled like crazy to find interesting articles filled with Fall info, ideas, tips, and photos. Articles that will help you usher the Fall Season in at your house. I hope you enjoy reading the articles offered below and that they inspire you to make any needed changes.


Paper or Paperless billing? Which serves YOUR needs best?

Paper or Paperless billing?  Which serves YOUR needs best?

These days, companies are under pressure to go "green" and become more environmentally friendly.  As a result, an increasing number of businesses are offering their customers a paperless option with which to receive and pay their bills. 

There are obviously many positives to be found within these paperless services:

Trees are saved  Reduced postage costs  Less paper documentation to organize or save/storePossible rewards for switching to paperlessPayments can often be made/posted same-dayAutomated payments can be set-upMore
But I can tell you from my vantage point as a Chicagoland/IL/WI Mortgage Originator, there are also negatives to be found within paperless methods.  For some of my mortgage clients, the choice of going "paperless" just hasn't worked well.

 For some, an email or text reminder regarding payment of bills has not been enough. They NEED a paper billing to arrive in their mail. 

Their paper bil…