CONVENTIONAL: WHAT YOU SHOULD KNOW

Types of Conventional Loans

Conventional loans follow the lending guidelines of the Federal Home Loan Mortgage Corporation (Freddie Mac) and Federal National Mortgage Association (Fannie Mae). These types of loans are not backed by any  government agencies. Because they adhere to these rules, they are called conforming. These mortgages/loans have principle limits and have the best terms and interest rates, resulting in optimum monthly payments.

Conventional Purchase

Purchasing a home with a conventioanal loan offers several options. A big advantage is that with a down payment of 20%, you can avoid paying mortgage insurance. Types of loan options include:

  • First Time Home Buyer
  • Second Time Home Buyer
  • Vacation Home
  • Investment

Conventional Refinance

You have the option of refinancing from one type of loan into a conventional loan, thus taking advantage of better terms and lower interest rates. The savings result from the removal of mortgage insurance.

  • Lower Your Payments
  • Cash-Out Refinance
  • Pay off Your Loan Faster
  • ARM (adjustable rate mortgage) to Fixed Refinance

Conventional Purchase

Conventional loans offer several benefits, including:

  • Faster process in securing  a loan
  • Avoiding government approval requirements and dealing directly with the lender
  • Varied options for loans on investment properties, primary and secondary homes
  • Variety of down-payment options
  • Choice of adjustable rate mortgage (ARM) or  fixed-rate mortgage
  • Lower cost home loans than offered through government programs
  • Elimination of  mortgage insurance premiums

Find out if I qualify for a Conventional loan!

Contact US

For general information or to set up an appointment please complete the form below or give us a call.

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15851 Dallas Pkwy, Ste 600 Addison, Texas 75001

FHA LOANS: WHAT YOU SHOULD KNOW

Minimum FHA Down Payment Incentives

FHA home loans are loans which are backed by the Federal Housing Administration. Targeted at encouraging lenders to make financing available to people with lower credit score or limited credit, FHA loans directly serve first-time buyers but you are not required to be a first-time homebuyer. FHA financing is ideal for any group underserved by conventional home financing options.

Are you struggling to put money aside for a down payment on your first property? if so, one of the biggest incentives of FHA loans stems from the fact that FHA down payment requirements can often stand at as little as 3.5% of a property’s overall market value.

Should I get an FHA Home Loan?

If you have had credit issues or little in the way of existing capital, FHA home loans are a fantastic way to realize your dreams of home ownership. This is because FHA loan providers will allow you to use money gifted to you (as well as money from other sources) for your FHA down payment. Even better, some states offer dedicated FHA down payment grant assistance.

Of course, there are potential pitfalls when it comes to FHA home loans. Ongoing monthly insurance fees of 0.85% can make FHA loans themselves much costlier than many more conventional home financing options. This being the case, if you have a credit score of 700-800, it is definitely worth weighing the benefits of conventional financing against different FHA home loan options.

FHA Max Loan Amount & Qualification Requirements

FHA max loan amounts vary from state to state. According, however, to a statement from the Department of Housing and Urban Development, maximum FHA home loan amounts in high-cost areas currently stand at $362,250.

Of course, there are certain restrictions on who can apply for an FHA home loan. As a rule, as well as an FHA down payment of 3.5%, applicants also need to have a FICO credit score of at least 580. At the same time, FHA home loans can only be used to purchase property which will be used as a person’s primary residence, not a second or vacation home. We can go down to a 500 score with 10% down.

Contact US

For general information or to set up an appointment please complete the form below or give us a call.

SIGNATURE

15851 Dallas Pkwy, Ste 600 Addison, Texas 75001

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