When you are shopping for a home in Tempe or elsewhere in Arizona, one flexible mortgage product you might consider that can feature a low down payment is a conventional home loan.
What is a Conventional Loan?
A mortgage that is not insured by a government agency is known as a conventional loan. If that loan is eligible for purchase by Fannie Mae and Freddie Mac, it is a conforming mortgage. This is the type of home loan that borrowers usually are thinking of when they talk about conventional mortgages.
Conventional Loan Limits in Arizona
What determines whether Fannie Mae and Freddie Mac can purchase a mortgage? The conforming loan limits. These are set annually, and can vary depending on your county. In certain high-cost counties, there are higher loan limits. But for all of Arizona, the conforming loan limits are as follows:
So long as you want to borrow up to those limits, a conventional conforming loan could be right for you.
What about situations where you may want to borrow more? To finance the purchase of a more expensive home, think about applying for a jumbo mortgage.
Not sure whether you need a jumbo or conventional loan? That is something Misty can help you figure out.
Do You Qualify for a Conventional Mortgage?
When you apply for a conforming loan, these factors will determine what you qualify for:
- Your credit score
- Your debt-to-income (DTI) ratio
- Your employment status.
- Your employment history.
- Your down payment ability.
- Your income.
During your consultation, Misty can offer you recommendations to help you increase your credit score, and can answer your questions about down payments and other aspects of a mortgage.
Buy a Home With a Conventional Mortgage in Tempe or Beyond
If you are ready to buy a home with a conforming loan, Misty Garrison can help you do so in Tempe or anywhere in the state of Arizona. To begin, please call today at (480) 618-5358 to schedule your consultation.