Conventional Home Loans with GSF Mortgage
A conventional loan is one that is not backed by any government entity such as FHA or VA. Who may benefit from a conventional mortgage? Conventional mortgages are ideal for buyers with excellent credit and can afford a down payment between 5-20%. There are options such as a Fannie Mae Home Ready Mortgage for down payments on conventional loans with as little as 3% down. If you are putting less than 20% down you will be required to carry monthly mortgage insurance also known as private mortgage insurance (PMI).Maximum loan limits by dwelling type
- 1 unit is $453,100
- 2 unit is $580,150
- 3 unit is $701,250
- 4 unit is $871,450
Types of properties eligible
- Single Family Homes
- 2, 3, or 4 unit properties
- Condominiums
Benefits of Conventional Loans
- Buyer has immediate equity in the property
- No private mortgage insurance is required with a 20% down payment
- Lower overall interest rates
- Lower closing costs and fees
- Closing costs and fees may be included in the loan
- Repayment terms are generally more favorable
- Fewer governmental hurdles, making the loans quicker to process