Conventional loans are mortgage loans offered by non-government sponsored lenders. A conventional, or conforming, mortgage adheres to the guidelines set by Fannie Mae and Freddie Mac. It may have either a fixed or adjustable rate. Superior Mortgage Services Inc offers conventional mortgages in Cincinnati, as well as all of Ohio.
What is a Conventional Loan?
While many think that a 20% down payment is required for all conventional loans, many lenders now offer low down payment options. Superior Mortgage Services, Inc. offers conventional loans with as little at 1% – 3% down.
Conforming vs. Non-Conforming Loans
Conventional loans are split into two types: conforming and non-conforming. Conventional loans are loans that conform to the underwriting standards set for by Fannie Mae and Freddie Mac. The maximum loan amount for a Conventional Conforming loan is $453,100. Non-Conforming Loans are loan that fall outside the underwriting standards of Fannie Mae and Freddie Mac. Non Conforming loans can also allow loan amounts above $453,100.
Benefits of Conventional Loans
Conventional loans are intended for borrowers with better income and credit scores, and have good rates and flexibility. Conventional loans do not require additional Funding Fees or Guarantee Fees that come with FHA, USDA and VA loans.
Conventional Loan Limits
Different counties have different limits on how much you can borrow for a Conventional Loan. The maximum loan amount for a 1 unit property in the majority of counties in the United States is $453,100. The maximum loan amount for 1 unit properties in High Cost Areas range from $697,650 to $1,019,475.
Get Pre-Approved for a Conventional Loan
If you are looking to purchase a home in Cincinnati, or anywhere in Ohio, contact Superior Mortgage Services Inc at (513) 474-0899 for more information, or simply fill out the form on this page.