Conventional Loans
Conventional Loans: A Full Range of Home Financing Choice
When it comes to home financing, there is a world of possibilities available to you. There are many types of mortgages with a broad spectrum of interest rates, down payments and terms. One of the most common types of home financing is a conventional loan. Also known as “conventional mortgage,” this type of loan is fully insured and funded through private insurance companies. They have more stringent approval requirements than some government-backed loans, but also have several benefits to consider. Ann Marie Amalfitano is a mortgage expert with Sovereign Mortgage, a trusted local mortgage broker serving clients in the state of Florida, particularly Volusia, Flagler, and Seminole countries. Contact her at Sovereign Mortgage @386.717.2007 to schedule a consultation about a conventional loan today.
Conventional Loan Basics
A conforming home loan is one that meets, or “conforms” to, certain guidelines set forth by Freddie Mac and Fannie Mae.
Freddie and Fannie are the two government-sponsored enterprises (GSEs) that purchase mortgages, bundle and securitize them, and then sell them to investors through Wall Street and other channels. When a loan meets the purchasing criteria used by the GSEs, it is said to be a conforming loan. There are various criteria used to define a “conforming” mortgage product. But the size of the loan is one of the most important criteria, from a borrower’s perspective. Freddie Mac and Fannie Mae will only purchase loans up to a certain amount. These maximum amounts, or limits, vary by county and are updated every year.
On November 26, 2019, the Federal Housing Finance Agency (FHFA) announced that it would raise the baseline conforming loan limit for 2020, for nearly all counties across the country. They are also increasing the limits for certain “higher-cost areas” that fall above the baseline. This is in response to home-price gains that occurred during 2019.
In most counties across the country, including Volusia, Flagler and Seminole, the 2020 maximum conforming loan limit for a single-family home will be $510,400. That’s an increase of $26,050 from the 2019 baseline limit of $484,350. This marks the fourth year in a row that federal housing officials have raised the baseline.
Conventional Loan Benefits
Ann Marie Amalfitano can help you find the right conventional loans for you and your family’s unique needs. Benefits of conventional loans include:
- Great rates, both fixed and variable available
- Up to 30-year terms
- As low as 3% down payment
- Flexible approval requirements depending on your unique situation
- Fast approval so you can secure the home of your dreams
Ann Marie works closely with her clients, so you can ensure that your needs and goals are understood. She works with many qualified partners in the home purchasing arena, so you can get connected with Realtors and other professionals, fast.
Get Started Today
When it comes to purchasing a home, you need professional partners on your side. Ann Marie Amalfitano – Sovereign Mortgage is your destination for honest advice and a long-term financing partner. Whether you are just beginning to consider a conventional loan or are ready to compare rates, contact us. We work with clients in Volusia, Flagler, Seminole, and throughout the state of Florida.
