Conventional Mortgages – Leaman Team Powered by New American Funding

Frequently Asked Conventional Mortgage Questions

 

Leaman Team offers several conventional loan programs to eligible borrowers nationwide. Our team of experienced loan officers offer conventional mortgages with both fixed and adjustable rates. In order to help our clients better understand Conventional Mortgages, the team at Leaman Team has developed a list of Frequently Asked Questions and Answers.

If you have any further question regarding conventional loans or any other loan programs please contact one of our mortgage experts today at (512) 717-4299.

 

What is a conventional mortgage?

Conventional mortgages adhere to specific terms and conditions laid out by Fannie Mae and Freddie Mac. These set terms and conditions include items such as income requirements, credit score guidelines and down-payment specifications. Conventional mortgages often require down-payments anywhere from 5% to 20% and may have a fixed or adjustable rate.

 

Do many people get conventional mortgages?

Conventional mortgages are more popular than many assume. In fact, depending on the current market and consumer trends, roughly 35-50% of all home financing is done through conventional mortgages.

 

How is a Conventional Mortgage different than an FHA Loan?

FHA Loan

  • Guaranteed by the Federal Housing Administration (FHA)
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  • 3.5% down payment required
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  • 100% of the funding for the down payment may be obtained through a down-payment assistance program, relative or government agency
Conventional Mortgage

  • Terms and conditions must meet the funding criteria of Fannie Mae and Freddie Mac
  •  

  • Minimum of 5% down payment required
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  • If the money put down is at least 20%, then a conventional mortgage’s entire down payment may be funded by a relative. However, if the qualified borrower puts down anything less than 20%, at least 5% of the money put down must come from the buyers own personal funds

 

What is the Conventional Loan limit?

In most areas of the United States, conventional loan limits are set at $417,000. It is important to note, that most FHA loan limits are set much lower.

 
 

If you have any further question regarding conventional loans or any other loan programs please contact one of our mortgage experts today at (512) 717-4299.