Conventional Loan facts
For San Antonio home buyers, there's a large mix of low and no down payment mortgages from which to choose. Conventional mortgages are loans underwritten and insured by private lenders and investors instead of mortgages that are government backed like FHA Loans and VA Home Loans.
Conventional loans are "conforming" if they are generally $726,200 or less for a single-family home. Conforming loan limits can be higher in pricier regions of the country. For example, in such states as Alaska and Hawaii, it's $970,800.
A conventional loan is the most common type of mortgage. About 35-50% of mortgages, depending on market conditions and consumer trends are conventional mortgages. They are not insured or guaranteed by the government, thus it's available to anyone meeting the qualification requirements.
There are also established guidelines for borrower credit scores, income requirements and minimum down payments. For example, most conventional loans require somewhere between 5 percent and 20 percent down. Fannie Mae and Freddie Mac offer a 5% down mortgage. The FHA's main product requires just 3.5% down payment. The VA and USDA, qualifying home buyers can buy with no down payment at all.
Conventional loans may be conforming or non-conforming.
Conforming loans means that they meet the stipulations set forth by Fannie Mae and or Freddie Mac. Non Conforming loans will not meet those stipulations (such as credit quality, loan-to-value ratio or loan amount).
Why choose Grove Mortgage for your home loan?
Our headquarters is located in San Antonio, Texas and are a VA Approved lender and Licensed Mortgage Broker and have been providing mortgages throughout Texas since 2002.
We can help you accomplish your home purchase with expert service, fast closing and very low fees and proudly boasts an A+ rating from the Better Business Bureau.
