Mortgages & Home Lending | Citizens Bank of Edmond

Conventional Loan

No Mortgage Insurance Premium (MIP):
- Conventional loans do not require upfront or ongoing mortgage insurance premiums (MIP). With a down payment of 20% or more, private mortgage insurance (PMI) can be avoided as well.
Flexible Property Types:
- Conventional loans can be used for various property types, including primary residences, second homes, and investment properties.
Credit Score Flexibility:
- While conventional loans generally require a higher credit score, they offer more flexibility in terms of credit history and credit profiles. Borrowers with excellent credit can access competitive interest rates.
Higher Loan Limits:
- Conventional loans often have higher loan limits compared to government-backed loans like FHA. This can be advantageous when purchasing a more expensive home.
Investment Opportunities:
- Real estate investors often prefer conventional loans for purchasing rental properties. The absence of strict occupancy requirements allows for more investment opportunities.
Refinancing Options:
- Conventional loans offer more refinancing options, including cash-out refinancing.

Lower Down Payment:
- FHA loans typically require a lower down payment compared to conventional loans. Borrowers can put down as little as 3.5% of the home’s purchase price. This makes homeownership more accessible, especially for first-time buyers who may not have substantial savings.
Flexible Credit Requirements:
- FHA loans are more forgiving when it comes to credit scores. Borrowers with lower credit scores can still qualify.
- Additionally, FHA loans are more lenient regarding DTI (Debt-to-Income) ratios. Borrowers can have a higher percentage of their income going toward debt payments and still qualify.
Assumable Loans:
- FHA loans are assumable, which means that a buyer may take over the existing FHA loan. This feature can be attractive to potential buyers and may make the home more marketable.
Non-Occupant Co-Borrowers:
- FHA loans allow non-occupant co-borrowers (such as parents) to help qualify for the loan. This can be useful for young buyers who need assistance from family members.
Streamlined Refinancing:
- FHA loans allow for streamlined refinancing, making it easier to refinance without extensive paperwork or credit checks. This can be helpful if interest rates drop.

Eligibility:
- This mortgage program is specifically designed for eligible veterans, active-duty service members, and surviving spouses.
No Down Payment Requirement:
- VA loans offer 100% financing, meaning borrowers can purchase a home without making a down payment. This benefit is especially valuable for veterans who may not have substantial savings.
No Private Mortgage Insurance (PMI):
- VA loans do not require PMI. This can significantly reduce monthly payments.
Flexible Credit Requirements:
- VA loans are more lenient regarding credit scores. While a good credit history is essential, veterans with less-than-perfect credit can still qualify.
Assumable Loans:
- VA loans are assumable, allowing a buyer to take over the existing VA loan when the home is sold. This feature can make the property more attractive to potential buyers.
Streamlined Refinancing (IRRRL):
- The VA offers the Interest Rate Reduction Refinance Loan (IRRRL), which allows veterans to refinance an existing VA loan to a lower interest rate without extensive paperwork or a new appraisal.

No Down Payment Requirement:
- One of the most significant advantages of USDA loans is that they allow for 100% financing. Borrowers can purchase a home without making a down payment.
Flexible Credit Requirements:
- While USDA loans consider credit history, they are more lenient regarding credit scores. Borrowers with lower credit scores may still qualify.
Rural and Suburban Eligibility:
- USDA loans are specifically designed for properties in eligible rural and suburban areas. The program aims to promote homeownership in less densely populated regions.
Income Limits:
- USDA loans have income limits based on the area’s median income. Borrowers must meet these limits to qualify. The program is particularly beneficial for moderate-income households.