Conventional Conforming Loans

Conforming loans have terms and conditions that follow the guidelines set forth by Fannie Mae and Freddie Mac.  Because of the ever changing mortgage market and recent economic issues the vast majority of loans being funded within “conforming limits” are being sold solely to Fannie Mae and Freddie Mac.  In other words, guidelines, loan limits and underwriting standards have all been standardized.  Underwriting is automated and approves loan scenarios based on many factors including; credit history, property type, employment history, assets and property value.

Conforming loans have many benefits.  They are available to purchase, refinance or “cash out” refinance owner occupied or investment properties of all types for; single family homes up to 4 unit properties.   Loan limits vary by the area of the country you live in and the property type you are purchasing or refinancing.    

There are many factors involved in qualifying for a conforming loan including the amount of down payment required.  Down Payment requirements can range from 5% to 25% (95% loan to value to 75% loan to value) depending on the area of the country you live in, your individual financial profile, and the type of property you are purchasing or refinancing;

• Primary Residence
• Second Home
• Investment Property

Conforming loans with a combined loan to value over 80% must have Mortgage Insurance (MI).  MI rates and loan Interest rates for a conforming loan are based on your credit history and type of property you are purchasing.  Loan program available for conventional conforming loans include;

• Fixed rate mortgages(10, 15, 20, 25 & 30 year terms)
• Interest monly mortgages
• Adjustable rate mortgages (3 year, 5 year, 7 year & 10 year terms)

Contact an OnQFinancial Mortgage Consultant today to find what options are available for you.