Conventional Home Loans

Conventional Home Loans fall into 2 categories: Conforming and Non-Conforming.

Conforming Loan – A Conforming home loan is one that meets, or “conforms” to, certain guidelines set forth by Freddie Mac and Fannie Mae.  They not guaranteed or insured by any government agency, including the Federal Housing Administration (FHA), the Farmers Home Administration (FmHA) and the Department of Veterans Affairs (VA

• Fixed or Adjustable Terms
• Suited for Buyers good credit and larger savings
• Typical Down Payments – 5%, 10%, 15%, 20%
• Minimum Credit Score Requirement – Minimum 640
• PMI –Private Mortgage Insurance Not Required on Down Payments of 20%
• PMI can be cancelled – when the equity in your home has reached at least 20% of the original appraised value, you may ask the Mortgage Servicer to cancel PMI. When the balance drops to 78%, the Mortgage Servicer is required to cancel PMI.
• Seller may contribute from 3% up to 6% of the sales price towards buyer’s reasonable closing costs depending on the amount of Buyer’s Down Payment.
• Does Not Have to Be Owner Occupied
• Max. Loan Limits by Region
  • Travis County – (2020 loan limits)
    • One Unit – $510,400
    • Two Unit – $653,550
    • Three Unit – $789,950
    • Four Unit – $981,700
  • Williamson County – (2020 loan limits)
    • One Unit – $404,800
    • Two Unit – $518,200
    • Three Unit – $626,400
    • Four Unit – $778,450

For More Information on Conforming 2020 Loan Limits by Region Click Here

Non-Conforming – Jumbo Loan – A mortgage loan in an amount that exceeds the 2020 conforming limits. Jumbo loans are still widely available in the U.S., but the qualification criteria are generally stricter for these products due to the higher level of risk involved.

For More Information on Conventional Loans Click Here