New 2022 conventional loan limits won’t be released until January … but we’re honoring them now so you can start taking advantage!
- $647,200 for regular one-unit conventional loans (increased from $548,250)
What Are the Advantages of Conventional Loan Financing?
There are several benefits of conventional financing, including the following:
- You can buy a primary home residence, second home, or rental property with most conventional loans. Government Loans do not allow this
- You have the choice of fixed rates, adjustable rates (ARMs), and loan-term options from 10-30 years
- Down payments as low as 3% with our traditional conventional options, 97% loan-to-value
- You pay no monthly mortgage insurance with a down payment of 20% or more
- Mortgage insurance may be cancelled when your home equity reaches 20% of the original appraised value
Fannie Mae and Freddie Mac guidelines establish the maximum loan amount, borrower credit and income requirements, down payment, and suitable properties. Fannie Mae and Freddie Mac announces new loan limits every year.
10 Year and 15 Year Loan Options
A great loan term to payoff your mortgage quickly! These loans accumulate equity very fast but, come with a higher payment. The main advantage of these terms is the lower interest rate. The offer the lowest of any mortgage and are ideal if you can afford the monthly payments. If you are looking to own your home and payoff the debt quickly a 10 year or 15 year mortgage is the best option.
20 Year, 25 year and 30 Year Loan Options
These loans tend to have a slightly higher interest rate due to the length of the among of years. The main advantage of these loan options compared to the 10 year and 15 year loans is a lower payment. You can always pay more towards each payment to pay off at a quicker pace with no pre-payment penalties. If you plan to be in your home long-term or want a lower payment these options are a great solution.
Texas Premier Mortgage will help educate you on the specific loans you qualify for and if a conventional loan is right for you. Conventional products include Texas Purchase, Texas Refinance, and Texas Home Equity products.