05 Mar Holly Walther Lending Team: Fun Fact Friday- Conventional Loans Explained
Holly: Hey guys, happy Friday. It’s Holly and little miss Daisy. The real thing is back with us and we are here with this week’s fun fact Friday. Now, last week we mentioned over the next few weeks, we are going to do a series on loan types. So this week we are going to start with the conventional loan. What does that mean? Well, that is a Fannie Mae or Freddie Mac loan. That loan size for the 2021 loan limits is going to be limited to $548,250. If you are a first-time home buyer or haven’t owned a home within the past four years, you can put as little as 3% down. So guys, think about that. That is amazing. You can buy a house over $500,000 with 3% down. You need to run, not walk to your local real estate agent. I’ve gotten great referrals and start looking. If the 3% you don’t qualify, then you’re looking at as little as 5% down.
Now, a lot of people call and say, ‘no, no, no, I want 20% so I don’t have to pay the monthly mortgage insurance.’ Well, we’ve got lots of great strategies to work around the mortgage insurance as well. So bottom line, conventional loans, they are fantastic. You’re going to have a little less restrictive underwriting guidelines compared to their jumbo recap you can purchase with as little as 3% down. And that maximum loan limit in today’s environment is $548,250. So that is this week’s fun fact Friday. Have a great weekend and we will see you next week.