Conventional Loans – Understanding the Basics
A conventional mortgage adheres to the guidelines set by Fannie Mae and Freddie Mac. It may have either a fixed or adjustable rate.
WHAT ARE THE BENEFITS OF A CONVENTIONAL LOAN?
- Excellent financing source for typically higher credit scores that also have minimum required down payment
- Maximum loan amounts at $417,000 (Higher loan limits can apply based on geographical locations)
- Primary Residences up to 95% financing
- Second Homes or Vacation properties up to 90% financing
- Investment Properties up to 80% financing
- Single Family Homes, Townhomes, Condos, & 2 to 4 unit properties are eligible
- Condo financing subject to additional terms and conditions based on the project
- Special foreclosure programs available for eligible Fannie Mae Foreclosures
- No PMI (Private Mortgage Insurance) for loans financed at or below 80%
HOW CAN I QUALIFY FOR A CONVENTIONAL LOAN?
- Available for primary residences, second homes/vacation properties and investment properties
- Maximum financing up to 95% for primary residences
- Maximum financing up to 90% for second homes and vacation properties
- 620 minimum score for financing up to 80% for second homes and vacation properties
- Flexible PMI (Private Mortgage Insurance) options when available
- For information on the Fannie Mae HomePath program, click here for additional details
- Minimum credit conditions will apply and sufficient equity will be required on all programs
ARE YOU INTERESTED IN A CONVENTIONAL LOAN?
Without the right assistance, qualifying for a Conventional loan can be very difficult and overwhelming. It’s always best to discuss your options with a lenderyou can trust like Metroplex Mortgage Services. Our financing expertise has helped thousands of homebuyers become happy homeowners and we can help you too!
If you are in the market for a home it is important to become pre-qualified. You can get started in less than 5 minutes! Or you may contact us with any questions you may have.
QUESTIONS? CONTACT US HERE.
More specific loan program information can be found at our Conventional Loan Blog.