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Are there conventional loans available with only 7% down? Or only FHA

  • May 24 2011 - Fremont
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Answers (4)

Yes.  There are conventional loan programs with only 7% down in the conforming arena only (under $417K)

You have the following options:

Conventional with PMI goes to 95%

HomePath (if home qualifies)

My Community Mortgage (if low to moderate income)


For loans over $417K and under 729K, you can put 10% down and qualify for a conventional loan.  Any less of a down payment and FHA is your only option.

  • May 26 2011
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Yes there are conventional loans available. The main benefit is you do not have the 1% upfront mortgage premium insurance that is added to your loan amount.

MI vs. FHA Calculator

Happy funding, Rudi
  • May 25 2011
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7% is such an odd number for a down payment. I am so used to hearing 3 or 3.5% down. I would recommend going FHA for your purchase. Your down payment is 3.5% and your closing costs can be paid by the seller. The rates are still in the 4's (unless your credit score is less than 620) and the loan is really easy to qualify compared to conventional financing programs. Feel free to contact me or visit my website for further information.
FYI, I miss the east bay, I miss it lot!

Best of Luck!
  • May 24 2011
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FHA has lower credit score requirements & a more relaxed debt ratio guideline, and underwriting exceptions.   But there is a 3% down conventional loan with lower MI, NO UPFRONT MI….   You really need to discuss your specific situation with a qualified loan officer to see which route is best for you and if you qualify. 
  • May 24 2011
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