"Realizing that lack of cash and tight budgets may be deterring some buyers, Genesee Regional Bank launched a Conventional Plus Mortgage, Davis says. One of the biggest obstacles when it comes to buying a home is the amount it requires for closing and the monthly payment, Davis says.
The Conventional Plus loan at GRB requires the same 3 percent down that a FHA loan does, but the amount for Private Mortgage Insurance is significantly less, with a buyer being able to save up to 40 percent based on his or her credit score. But the interest rate will be slightly higher, Davis explains.
On a 30-year loan of $125,000, which is the median existing home price in the 11-county Rochester region, a conventional loan may charge interest rates of 3.875 percent, while FHA at 3.75 percent and GRB's Conventional Plus is at 4.125 percent. The PMI payments will be around $135 a month for FHA, $88 for conventional and $79 for Conventional Plus, Davis explains.
There are caveats to qualify for GRB's Conventional Plus loan such as having to meet income requirements and credit score minimums. The credit score should be above 620 and the income for an individual cannot exceed $69,500, Davis says. You do not need to be a first-time home buyer to qualify, Davis says."
Click here for more information about GRB's Conventional Plus or other mortgage products.
Mike Davis discusses loan options with first-time home buyer Marcy Pontius, 27, of Rochester.
Democrat & Chronicle photo by Kate Melton.