Conventional loans carry private mortgage insurance that can often be less than government insured mortgage insurance like FHA if your scores are above average. In addition the mortgage insurance is automatically removed when your loan balance gets down to 78% of your original purchase price.

• 3% downpayment for First Time Homebuyers
• 5% downpayment for repeat home buyers
• No mortgage insurance if 20% down!

Conventional loans often carry higher rates than government insured loans like FHA, USDA, and VA. However this drawback is often offset by the cancelling of the mortgage insurance eventually, whereas FHA and USDA mortgage insurance lasts the life of the loan.

• Higher rates and payments for low FICO buyers.