Loan programs · Florida, Ohio & Texas
Competitive rates for strong credit
Available in Fort Myers, Cape Coral, Naples and across Florida · Dallas, Fort Worth, Houston, Austin, El Paso and across Texas · Columbus, Cleveland, Cincinnati and across Ohio
A conventional loan is a mortgage that is not insured by the federal government. Most are written to Fannie Mae or Freddie Mac guidelines, which is what lets them be sold and serviced the same way everywhere. For a buyer with solid credit and some savings, it is usually the cleanest and cheapest way to finance a home.
This is also where being a broker pays off most. Every wholesale lender wants a well qualified conventional loan, which means they compete for yours on pricing and terms. I put your file in front of several of them and bring you the best combination, not the one bank down the street happens to be offering that week.
Your credit score, your down payment and the type of property set the price of the loan, in that order. Twenty percent down avoids mortgage insurance altogether. Between three and twenty percent you pay private mortgage insurance, but unlike FHA it goes away: you can ask to cancel it at 80% of the original value and it must drop off automatically at 78%.
Fannie Mae and Freddie Mac set a conforming loan limit every year, and it is higher in some counties than others. Above that number the loan becomes a jumbo, which is a different conversation with different lenders. I will tell you where the line sits for the county you are buying in.
Self-employed buyers are where conventional underwriting gets picky, because it wants two years of tax returns and it reads them the way an accountant does. If your returns understate what you actually make, we talk about that early, because the fix might be a different program rather than a different lender.
Because every wholesale lender wants a strong conventional file, they compete on pricing. That competition is the whole point of using a broker.
Private mortgage insurance drops off once you have enough equity. On FHA it usually does not. Over ten years that difference is real money.
Primary residence, second home or rental property, purchase or refinance, on the same program.
Buyers with solid credit and a real down payment, and anyone whose FHA loan has done its job and is ready to be refinanced.
Whether this is the right program depends on your situation, the property and current guidelines, which change. That is the conversation to have before you start looking, not after you have found the house.
Good fit
Look elsewhere
I’m a broker. If your loan doesn’t fit one lender’s box, I’m not out of options. I shop it. And when it fits everywhere, they compete for it.
Questions
Some conventional programs allow as little as 3% down for first-time buyers, and 5% is common for everyone else. Twenty percent down avoids mortgage insurance. Which option makes sense depends on your savings, your credit and how long you plan to keep the house.
On a conventional loan you can request cancellation once the balance reaches 80% of the original value and it must be removed automatically at 78%, provided payments are current. That is a major difference from FHA.
It is the maximum loan size Fannie Mae and Freddie Mac will buy, set each year and adjusted by county. Loans above it are jumbo loans with different guidelines. I check the current limit for your county at the start.
Yes. Conventional investment loans need a larger down payment and are priced a bit higher than a primary home loan. For investors who cannot document income the traditional way, a DSCR loan is the other route, and I compare both.
Neither is better in the abstract. With strong credit and ten percent or more down, conventional usually costs less over time because the mortgage insurance can be cancelled. With thinner credit or a smaller down payment, FHA often gets the deal done. I run both when a buyer qualifies for both.
Not a commitment to lend. All loans subject to credit approval and underwriting on a complete file. Program availability and guidelines change, so confirm current terms before relying on them. Equal Housing Opportunity.
