Conventional Conforming Loan
(loans under $417,000)
Loan terms: 10, 15, 20, & 30 year loans
Interest rate types: Fixed, Adjustable
Loan types: Purchase, Refinance
Property type: Primary Residence, Second Home, & Investment Properties
The conventional conforming loan is the traditional mortgage program. It is called “conforming” because it fits within the standardized guidelines set by Fannie Mae and Freddie Mac. It can be used to finance all different types of residential properties. The loan requires mortgage insurance if the down payment is less than 20 percent. The monthly mortgage insurance required for this loan is cheaper than FHA mortgage insurance. A conventional loan caters to those who have more money to put down & great credit scores.
- As low as 3% down on a primary residence purchase
- Debt-to-income ratio as high as 45%
- Qualifying guidelines more strict than FHA
- Requires monthly mortgage insurance (MI) if down payment is less than 20%
- MI can be cancelled at 80% loan-to-value
- Loan amount up to $417,000 (anything higher is a jumbo loan – see below)
Conventional Jumbo Loan
(loans over $417,000)
Loan terms: 15 & 30 year loans
Interest rate types: Fixed, Adjustable
Loan Types: Purchase, Refinance
Property type: Primary Residence, Second home, & Investment properties
Also referred to as a “nonconforming” loan because the loan amount is ab(ove the max limit set by Fannie Mae and Freddie Mac. Jumbo loans require a larger down payment than conforming loans and also normally have a higher interest rate. Requires mortgage insurance if down payment is less than 20 percent. This program is a great option for individuals seeking high volume financing for a property.
- 15% down payment required
- Debt-to-income ratios up to 45%
- Qualifying guidelines more strict than more conforming & FHA loans
- MI can be cancelled at 80% loan-to-value
Click here to apply for a conventional loan
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