Low to moderate income home shoppers represent a large group of 21st century first time buyers. Regrettably, they’re a group that was also sidelined in the recent housing recovery due to overly strict loan requirements and limited low down payment mortgage options offered. Read More
The Federal Housing Finance Agency (FHFA) recently announced that 2020 conventional loan limits would be raised to $510,400 for single-family homes. This increase in conforming loan limits has gone up almost $100,000 since 2016. These limits may be exceeded if the property is located in a high-cost area. Read More
Conventional refinance is when you replace your existing home loan with a conventional mortgage. This type of refinance is versatile. You can use it to obtain a lower mortgage rate, get cash-out from your home equity, reduce the length of your loan term, refinance rental properties, or any other purpose. To be eligible, your current loan does not have to be conventional, FHA loans and USDA loans, or any other program can be refinanced with a conventional mortgage. Read More
Conventional loans are considered the ‘garden variety’ of mortgage programs. And while the term ‘conventional loan’ is defined as any mortgage that isn’t guaranteed or insured by a government agency, conventional loans can be either “conforming” or “non-conforming”. Conforming loans are conventional programs that meet or ‘conform’ to guidelines set forth by the Federal Housing Finance Agency (FHFA), as well as the funding criteria for either Fannie Mae and Freddie Mac.
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To decide if you qualify for a conventional mortgage, various aspects of your financial history will be looked at. How does that happen? Fannie Mae provides a powerful application called “Desktop Underwriter” that helps conventional loan lenders quickly evaluate mortgage applicants. “DU” software instantly analyzes the borrower’s finances, assets, employment history, and credit profile. Freddie Mac also provides a similar program called “Loan Prospector“.
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