Mortgage loan limits are in place depending on where you want to borrow and the type of financing you choose. FHA and conventional limits are basically the same, ranging from $417,000 to $625,000 depending on the county where the property is located. Jumbo loans are those over the FHA and conventional limits. Your income and credit score are the primary factors when it comes to how much you can borrow and the limits of the loan. If you are looking for a jumbo loan, keep in mind the simple rule of thumb for mortgage payments: your gross monthly income should be roughly 3 times as much as your estimated mortgage payment.
Within a matter of minutes we will tell you how much you can borrow and what type of loan is recommended. FHA Loan Limits are in place to prevent buyers from getting overextended. Many people view FHA loans as gateway mortgages to help buyers purchase homes for the first time or to make it possible for buyers with low credit scores to qualify. Conventional loan limits are similar to FHA loans with respect to limits, but a major difference is the Purchase Mortgage Insurance [PMI] requirement for borrowers who come in with less than 20% as a down payment. Simply stated, with a conventional loan, PMI can be waived with a down payment of 20% or more. Whereas an FHA loan will always require MIP [Mortgage Insurance Premium] that cannot be waived unless you refinance out of the FHA loan.
Your Current income determines how much you can borrow. Your Monthly payments are calculated based on your interest rate and the term of years for repayment. Purchase loan limits are based on FHA guidelines and your ability to pay back the loan. The best way to figure out how much you can borrow is to call and talk to our team of advisors today. In a quick call we will let you know what your options are and help you to move forward today.
FHA Loan Limits
FHA Loan Limits now range between $417,000 and $625,000 depending on the county where your property is located. FHA Home mortgage rates are still very competitive, and your credit score does not need to be very high to get a low rate. You can choose mortgage loans with fixed rates or variable rates. Your monthly payment will depend on your interest rate and the number of years that you choose for your repayment term.
First time buyers have lower down payment requirements under FHA; right now if your credit score and your income are good enough to qualify, you can find FHA loans that only require 3.5% for the down payment. Property taxes need to be factored into the equation when it comes to estimating Affordable monthly payments. A good rule of thumb is to budget spending less than 40% of your net income on your mortgage, property taxes, and homeowners insurance to make sure that you have enough money left over to cover monthly expenses.
Conventional Mortgage Loan Limits
Conventional loan limits are basically the same as FHA limits: ranging between 417,000 and $625,000 depending on the county where your property is located. If you are buying a second property, you will need to make a bigger down payment than you would for a primary home purchase. Conventional loan limits are in place in order to distinguish between Federally-backed Fannie Mae and Freddie Mac investors, and private investors that purchase jumbo loans. For loans backed by the Federal investors, there are specific guidelines in place, and if you plan to borrow more than conventional loan limits, you will need to look for a jumbo loan.
A conventional mortgage requires good credit scores and a strong income history that is documented and supported with 2 years of tax returns and 6 months of bank statements. Lending limits for conventional loans are in place to ensure that investors will buy these loans on the secondary market and resell them as a mortgage backed security. Do you qualify? Call us today and we will tell you right away; one quick call and we will let you know what your options are and help you to move forward today.
How to Get a Home Loan
Our team is here to help you qualify for a loan and to help you find out what the mortgage loan limits are for you. ConvertYourEquity.com is an Ethical mortgage company; we believe that the right thing to do is to help you reach your goals and let you know if a deal doesn’t make sense for you. We will do all that we can to help you reach your goals by offering personalized service, including in home consultations and after hours meetings. If you want to know how to get a home loan, pick up the phone and let our trusted advisors answer your questions today. One quick phone call using our home loan calculator and prequalifying process and you will know whether buying a home is a dream within reach for you!