Conventional vs. military mortgage loans

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Those who have served their country or are currently serving and are interested in applying for a mortgage loan have two options: either they can apply for a conventional loan or for a military mortgage. Both options have their pros and cons, but the military option was designed to meet the needs of military professionals and when they choose to work with an experienced broker in this field such as Nicole Drummond, they will certainly be happy about the results they option. However, these are the main things they should know about each one of these two options:

 

Conventional mortgage loans

Conventional home loans are usually for 30 years and follow strict rules for qualification. They need to have a good credit history, a stable source of income and a high credit score. While there may not be an official minimum credit score, loans are usually granted to those who score over 600 points. Also, people have to pay about 10 percent in down payments and in some cases up to 20% of the entire amount, making it rather difficult in obtaining a mortgage loan.

 

 

This type of mortgage is guaranteed by the government and thus the standards are not as stringent as in the case of conventional ones. With this being said, the credit score still needs to be quite high, sometimes even higher than before, but the down payment is usually lower. In addition, the military mortgage is designed to allow military professionals who need to relocate to do so without any problems. Since the down payments required by this type of loan is very low or in some cases it is not required at all, it is understandable why those who work in the military should consider taking this type of loan as opposed to a regular one.

 

To conclude, while the application process for a conventional mortgage may be easier, the stricter rules in the field make the military one a much better choice for those who have the chance to apply for this type of loan. In addition, everything can be done with the help of an experienced military mortgage broker who knows all the steps that need to be taken to easy the entire process and guarantee the success of the applicants. Brokers such as Nicole Drummond have been on the market for many years and are familiar with all the steps that need to be taken to make sure their clients will receive the loan they need.