For a list of lending institutions, click here. Once you have selected a lender, you will need to ask the lender what specific documents you will need to provide for the loan application. Conventional loans require a minimum 5 percent downpayment. PMI protects the lender against financial loss in case the borrower defaults. Borrowers who do not have enough money to cover the downpayment, closing costs and pre-paids, may be able to get assistance through the FHA, VA, and VHDA loan programs.
Most lenders consider an applicant's income to debt ratios.
The higher the LTV, the higher the risk to the lender. The lower the LTV, the lower the risk to the lender.