Conventional Loans
Conventional loans are also known as conforming loans. They are insured by Fannie Mae and Freddie Mac, and have varying loan amount limits based on the property’s location. In Texas the conforming loan limit is $417,000. In parts of California, where the median home prices are considerably higher, the loan limit is $729,750. These loans typically require PMI (private mortgage insurance) when the loan to value exceeds 80%. Other options to eliminate the PMI involve subordinate financing such as an 80-10-10 or 80-15-5. This would be an 80% loan with a 10% or 15% second lien. The down payment would be 10% or 5%. Give our Team a call to discuss your options.
