Conventional Loans

Conventional (Fannie Mae and Freddie Mac)

Known as the “plain vanilla” home loans, conventional mortgages are one of the three major mortgage loans for borrowers. There is no minimum loan amount for a conventional mortgage loan, which makes a conventional mortgage loan an effective vehicle for all your borrowing needs. Being able to purchase your dream home becomes a reality with the conventional mortgage loan, which offers great rates, low costs and homebuying flexibility. The maximum loan amount is $548,250 and you can use conventional mortgage loans for many types of properties. This includes condos, where financing a condo with 5% down calls for a full review. Borrowers who want a limited condo review can choose to give over 25% down. Investment properties also call for a minimum of 15% down.

Conventional mortgage loans also allow for gifts as long as the buyer provides 5% of his/her own funds. The guidelines for a conventional mortgage loan are less relaxed. The minimum credit score needed is 620 while the standard Debt to Income (DBI) ratio is 43%. Conventional loans adhere to strict institutional guidelines and Fannie Mae or Freddie Mac guidelines. The security and the stability of the conventional mortgage loan makes it a popular option for homebuyers. Because conventional mortgages offer lower interest rates and a quicker payout, they provide great value for buyers who have the ability to put at least 5% down. 

Wil Reguera

NMLS 546539

 

Caliber Home Loans

 

1701 Ponce de Leon Blvd Suite 205
Coral Gables, FL 33134

Direct: 305-520-9457

wil.reguera@caliberhomeloans.com

 

 

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