How difficult is it to qualify for a 5% down conventional mortgage loan?

FHA requires 3.5% down with monthly mortgage insurance added to your payment.. Conventional will do 5% down, but unless you have a really high credit score, you might want to consider going FHA.. the mortgage insurance would be less... there's so many other factors that will determine your best option, but much more info is needed to advise you properly.. The best advice I can give you is to contact a LOCAL mortgage broker and apply with them. Not the local "Big" bank, and certainly not one of those 50 states internet lenders...By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Good credit and some reserves are a necessity for 95% conventional. I've seen deals approved with a Mid 700 score (760+) get approved with only enough cash to close plus two months of "liquid reserves". Because most investors allow you to use a percentage of your IRA or 401k balance as reserves, this can overcome the little liquid reserves. If you do not have money in an IRA or 401k and after closing costs you have less than six month's of payments in the bank, you are likely to be declined for Mortgage insurance resulting in a decline of the conventional loan. If this is the case, you are likely to be approved FHA. Have your Mortgage Professional review your situation and show you the difference in monthly payment and cost of a 95% conventional and a 96.5% FHA. He should also be able to tell you what level of reserves you will need. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950

it depends on your credit score , and you might be better offf with a homepath loan, 3 % down 660 fico score, no mortgage insurrance ,and your closing costs sometimes are paid by fannie mae please email me at yourloanpartnerforlife@live.com linda

Not difficult at all if you have a 740 score, 41% debt to income ratio, 5% down and 2 months reserves. If your score is lower, you'd still be able to qualify but possibly at a higher rate.

With a high score you can so long as you get an approve/ eligible which requires u to keep your debt to income levels below 45%. There the other options listed above and along the Fha loans are the $100 down loans on their repossessed homes.

If you can qualify, a conventional loan is going to get you the best overall deal these days... But that doesn't mean it is the best deal your your individual situation. Consult a local non-bank licensed loan officer for more details. Generally speaking, if you have stable employment, a middle credit score higher than 680, at least two months of your new mortgage payment left over in the bank after your down payment (401k, etc OK), and an overall debt ratio below 45%, you should be fine.

Shouldn't be that difficult as long as you don't have too much debt. Conventional loans are available with as little as 3% downpayment and with a strong credit score that will likely be your best option. FHA is the back-up plan for those that don't qualify for conventional. FHA rates are better but the monthly mortgage insurance (like PMI) is much higher.