Conventional loans are those that are non insured or guaranteed by any government agency such as FHA or VA.
Conventional loans can be used to purchase a primary residence, a second home or an investment property.
The qualifying guidelines for conventional loans are a bit more complex as they will vary depending on the lender and the loan program you are applying for.
Some of the program variations available include:
This refers to loans that fall under the standard FannieMae and FreddieMac guidelines which are followed by most mainstream lenders.
This refers to loans that exceed the county's set loan limits.
Qualifying requirements tend to be much more restrictive than the standard conventional loans.
However, this category of loans also offers a sub category: portfolio lending. These loans offer non traditional qualifying guidelines but usually at a higher interest rate.
Rather than liquidating your investment accounts, this option allows you to leave the funds in your account and pledge them as collateral for the loan
The funds will still be working for your while possibly avoiding paying possible capital gains had they been liquidated
Short on income but have plenty of assets? This is the program for you!
Your assets are used as income. By using an amortization schedule based on your age, a monthly figure will be calculated and applied as income on your application.
The assets do not need to be liquidated or used on a monthly basis
These programs are geared specifically for those who have not own real estate in the previous 3 years
Down payments as low as 3% are possible based on credit scores and other qualifying factors
These programs are often paired with Down Payment Assistance programs to maximize the purchasing power of the buyer
Let's take a look at some of the basic guidelines of the standard agency conventional loans
2019 Conventional Loan Limits
Conforming loans: All counties in the US
High balance loan limits
San Diego County: $690,000
Orange County: $726,525
Riverside County: $484,350- not eligible for higher loan amounts
Los Angeles County: $726,525
Ventura County: $713,000
You can find other counties in the US here: High Balance Loan Limits by County
*This overview is not all inclusive and does not include all guidelines or potential qualifying situations. Contact us or your lender for additional information that applies to your situation.
Laura Borja | Senior Mortgage Consultant | NMLS#199107
Cell: (619) 992-4061
27271 Las Ramblas ste 150 Mission Viejo CA 920691
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Ocean Lending Home Loans Inc. NMLS ID #1626788 (www.nmlsconsumeraccess.org). 27271 Las Ramblas ste 150 Mission Viejo CA 92691 (888) 508-5030. All rights reserved. This is not an offer to enter into an agreement. Information, rates, & programs are subject to change without prior notice and may not be available in all states. All products are subject to credit & property approval. Ocean Lending is not affiliated with any government agency. Licensed by the Dept of Business Oversight under the California Residential Mortgage Lending Act License # 41DBO-76602 and Finance Lenders Law Lic # 60DBO71981