Among the most common types of home loans are conventional loans, which are also called “conforming loans.”
Wherever you are located in the country, a conforming loan can provide you with the competitive financing you need to purchase a beautiful home.
Every year, the conventional loan limits are published by the Federal Housing Finance Agency (FHFA) for Fannie Mae and Freddie Mac. These limits determine how much financing you can take out through a conventional mortgage.
If you need to borrow more than the conventional loan limits permit, you are welcome to apply for a jumbo loan instead.
The conventional loan limits for 2019 depend on where you live. For most locations in the contiguous United States as well as in the District of Columbia and Puerto Rico, these are the general conforming loan limits:
If you live in Alaska, Hawaii, Guam, or the US Virgin Islands, these are the general conforming loan limits:
In high-cost areas, the conventional loan limits are higher:
You can see that the high-cost area conventional loan limits across the country match the general conforming loan limits for Alaska and Hawaii.
To know the exact conforming loan limits in your location, you will need to look up your county (when you contact us for a consultation, we can do this for you).
To qualify for the most affordable conventional loan, you will need to have an excellent borrower risk profile. These factors will be assessed:
Your credit score.
Your debt-to-income ratio.
Your employment status and history.
You financial history.
What down payment you can afford.
Often times buyers, when they can afford it, decide to put at least 20% down to get the best possible rate and avoid mortgage insurance. But many customers do not realize that it is also possible to get a conventional mortgage with a 3% down payment.
What you qualify for will depend on the factors above.
If you are ready to buy a home now with an affordable conventional loan, please give us call today at (800) 293-2133. During your consultation, we will help you figure out the conforming loan limit in your area as well as what you might qualify for. We look forward to matching you with the most suitable conventional mortgage for your needs. We work with customers in all 50 states.
The Best Home Loans is an Equal Housing Lender. As prohibited by federal law, we do not engage in business practices that discriminate on the basis of race, color, religion, national origin, sex, marital status, age, because all or part of your income may be derived from any public assistance program, or because you have, in good faith, exercised any right under the Consumer Credit Protection Act. Disclaimer: Programs subject to change without notice. All borrowers must qualify per program guidelines.