CONVENTIONAL
What is a Conventional Loan?
A Conventional loan is a loan that is not backed by a federal agency, but instead backed by private lenders such as Fannie Mae or Freddie Mac. Typically, conventional loans may require more from the borrower than an FHA LOAN.
What are the requirements for a Conventional Loan?
- Primary residence or investment
- 3% Down (first-time homebuyer only)
- Minimum 620 credit score
- NO Mortgage Insurance if more than 20% down
- Down payment can be a gift
- Seller allowed to contribute towards closing costs
What types of conventional loans are there?
Conforming
A conforming loan is a loan that adheres to the loan limits set by Fannie and Freddie.
Conventional (Conforming)
- $484,350 IN MOST COUNTIES
- Most common loan type.
- Loan amount must be $484,350 or less in most counties and may be as high as $726,525 in high-cost counties.
- If your down payment is less than 20%, you’ll typically need mortgage insurance.
- Credit score of 620
Non-Conforming
A non-conforming loan is a loan that falls outside of the conforming loan limits.
Jumbo (Non-Conforming)
- UP TO $1-2 MILLION
- Credit Score of 640
- Jumbo loan for amounts greater than the Conforming Jumbo limit in your county, up to $1-2 million
(Non-Conforming)
- UP TO $1-2 MILLION
- Credit Score of 640+
- Jumbo loan for amounts greater than the Conforming Jumbo limit in your county, up to $1-2 million
Who is eligible for a conventional loan?
Anyone who meets the necessary criteria for a conventional loan
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Feel free to contact me if you have any questions or would like a second opinion on your existing mortgage.