Conventional Mortgages vs. Non-conventional Mortgages in Fort Lauderdale Even if you’re buying your first home, you’ve probably already heard about the 2 most common types of mortgages, namely conventional and non-conventional. The first thing you need to remember is that conventional loans aren’t back by the Federal Government whereas non-conventional mortgages are. As the most common type of mortgage, conventional loans account for 60% of all home loan applications. Generally speaking, conventional mortgages are ideal for individuals with good credit who can pay a larger down payment. Conventional loans are more cost-effective over the term of the loan and are a smart investment for your future. The two types of conventional mortgages are adjustable or variable rate mortgages (ARM’s) and fixed-rate mortgages. Non-conventional mortgages were designed to accommodate borrowers with low to moderate incomes and who need a low to no down payment. This type of loan is ideal for individuals who may have been denied for a conventional loan. Some of the reasons for a denial include individuals who: • are self-employed • have a history of bankruptcy • have an unsteady employment history • have insufficient cash reserves One of the drawbacks to non-conventional loans is that the borrower is required to pay additional fees such as funding and guarantee fees as well as MIP’s or mortgage insurance premiums. https://www.google.com/maps?cid=5464149498827190981