How Much Can I Really Get?

May 17th, 2012

brian-martucci-how-much-house-can-i-afford

People seem to get confused by maximum loan amount allowances, down payment requirements, and the interest rates surrounding them. I thought it would be helpful to have a breakdown. I am going to show loan limits for owner occupied loans, for Conventional, FHA and VA loans:

CONVENTIONAL LOANS

Conforming loans, also called Agency loans, are titled as such because they “conform” to the various government agencies guidelines from agencies such as Fannie Mae, Freddie Mac and FHA. Hence, the conforming loan limits are set by these agencies who create the the secondary markets that loans are sold to.

**For current year loan limits click here.**

Conforming loans are up to $484,350 for 1 unit homes (single family homes, condos, townhouses), 5% is the minimum down payment. These loans are eligible for the lowest rates. However, condo loans with less than 25% down payment have higher terms by .75 discount points, which can translate to approximately to in between .125% and .25% in interest rate premium. And multifamily homes also have higher rates by approximately .25% and higher down payment requirements of 20% to 25% down.

Conforming “High Balance” are available in certain high cost areas and are for loan amounts from $484,351 up to $726,525 for 1 unit homes (single family homes, condos, townhouses), 5% is the minimum down payment here as well. These loans typically have rates a little higher than Conforming loans. And the same rules from above for conforming loans for condos and multifamily homes will apply to Conforming Jumbo loans as well.

Jumbo loans, also called Non-Conforming loans, are loan amounts from $726,526 and higher, for 1 unit homes (single family homes, condos, townhouses), 20% is usually the minimum down payment. These loans may be priced differently than the Conforming and Conforming-Jumbo loans.

FHA LOANS

Minimum down payment is 3.5%.
FHA Loan Limits vary by county, you can go to their site to determine the loan limit in your area. The easiest way to use this site is to:

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The rest you can leave blank, this will yield the best results.

VA LOANS

The down payment can be 0%.
VA Loan Limits vary by county, you can go to their site to determine the loan limit in your area. The easiest way to use their site is to download the list and find your area.

I hope this helps make things a little more clear as to how much money you can get for a mortgage!

Brian Martucci is a loan officer for Capital Bank Home Loans, a division of Capital Bank, N.A. He has been in the mortgage industry since 1986 and has served in a number of roles, including loan processor, loan officer, mortgage broker, branch manager, and vice president. Brian Martucci – NMLS# 185421. His opinions do not necessarily reflect the opinions and beliefs of Capital Bank Home Loans or Capital Bank. Capital Bank, N.A.- NMLS# 401599. Click here for the Capital Bank, N.A. “Privacy Policy”.​

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