As the market changes we are constantly looking for new loan products to help buyers get into homes faster and with as little trouble as possible.  With recent changes to FHA we have determined it is crucial to have a conventional loan that competes with FHA.  

FHA vs The Ready Bell 5% down Conventional loan;

1) FHA has upped their upfront MI fee to 2.25%.  So with the 5% down program you still have mortgage insurance but there are no upfront MI fees.  That saves you 2.25%
2) Also with FHA you have to have mortgage insurance for a minimum of 5 years.  With this you do not.
3) FHA appraisals are tougher than conventional appraisals.  With the 5% down you do a conventional appraisal.


Bottom Line: This is a great option for borrowers with limited amounts down. As many buyers have found some asset managers are not FHA fans and for those properties you now may have an ace in your pocket.  Please note that not all lenders will have access to this loan. This is a specialty loan. Please inquire for more details

*In order to qualify you need to have a credit score over 680 and a maximum debt to income of 41%