What are Conventional Loans?
Conventional loans adhere by the guidelines written by Fannie Mae and Freddie Mac. If your loan fits into that set of guidelines, this will be good loan for you. It offers competitive interest rates and good terms, in 30, 25, 20 and 15 years fixed loans. They also have adjustable rate mortgages.
Conventional loans are either Conforming (loan amounts under $647,200) or High Balance (that amount is set by the county if allowed). In Contra Costa County and Alameda County the High Balance loan limit is $970,800
What are requirements for a Conventional Loan?
- This loan can go as low as 3% for down payment for first time homebuyers and 5% for everyone else.
- Ask me about Mortgage insurance options when putting down less than 20%.
- 45% DTI for your gross income compared to your monthly mortgage payment
- The better your FICO score the better your interest rate and mortgage insurance rate.
Call me to see if this loan is a good fit for you.
