You’ve worked hard for a good credit rating. Here’s where it pays off. Conventional loans are a great option if you have good credit and enough money for a down payment.
What you need to know about conventional loans
A conventional mortgage is one of the most well-known options out there and can offer great rates to those who qualify. Certainty has products that allow you to put down as little as 3%. The maximum loan limit for one-unit properties is $726,200. This is a significant increase to last year when they were increased to $647,200.
Conforming loan limits are set by the Federal Housing Finance Agency (FHFA) each year typically in November. As mortgage rates climb and home values continue to increase, the decision to increase our conforming loan limits early will allow homebuyers to utilize a conventional loan instead of a jumbo loan. This will:
- Offer better pricing
- Require a smaller down payment for home purchases
- Require less documentation
If you are looking for financing over that amount, you will want to consider a Jumbo loan. Be sure to check with your Loan Officer about your financial goals.
Conventional loans offer options with fixed-rates or adjustable-rate mortgages (ARMs). You may be familiar with the concept of a fixed-rate mortgage, where the interest rate you obtain is constant for the entire period you have your loan. Another option to consider is an adjustable-rate mortgage (ARM), which comes with a variable interest rate. You can read more about ARMs here to weigh the pros and cons.
If you have good credit and a down payment, you can take advantage of some great options with a conventional loan. Find a loan officer near you to get started.
One of the most popular home loans
Many loan options available from 15 to 30-year terms and fixed or adjustable rates
No private mortgage insurance costs with 20% down payment
Down payment as low as 3% for those who qualify