A conventional mortgage has a minimum down payment or equity by the borrower of 20% of the purchase price or the value or the home if the borrower is refinancing their mortgage. Mortgage rates are usually higher than those of a high ratio mortgage because there is no regulatory requirement for them to be insured. Mortgage rates for are usually higher and lenders will require an appraisal. Even with the higher rates the cost of a conventional mortgages is lower than that of a high ratio mortgage.
A Sunlite Mortgage agent can get you a conventional mortgage through one of the many banks, credit unions or trust companies we represent. If there are issues with income or credit, our private lenders offer very attractive private mortgages.
With conventional mortgages the mortgage isn't insured by a mortgage default insurer. If you default on your mortgage,the lender isn't guaranteed their payment so they charge a higher premium for the money they are lending?
If the value of your home is less than $1,000,000.00 when you enter a mortgage contract with your lender even if its a conventional mortgage your lender may pay the insurance fee to protect them in the event of default. They will still charge you a higher rate but they will pay the insurance premium.