NC area Conventional home loan financing involves various loan types such as
adjustable-rate, 10, 20 and 30 year fixed-rate home loans. Conventional loans
may be used to finance new construction, single-family residences of one to four
units, condominiums, town homes and manufactured homes. Conventional loans may
be used to purchase a primary, secondary or investment property. 100% financing
with no money down conventional loans are also available.
What is a Conventional Mortgage? Unlike anFHA loan,a conventional
mortgage is not guaranteed or insured by the federal government. Charlotte NC conventional home loans refer to
a mortgage that follows the guidelines of government sponsored enterprises
(GSEs) such as Fannie Mae or Freddie Mac.
Charlotte NC Conventional mortgages can be classified as
conforming or non-conforming. A conforming loan meets the parameters set forth
by Fannie Mae or Freddie Mac. A non-conforming loan is one which exceeds the
maximum loan limits established by Fannie Mae and Freddie Mac.
How Charlotte NC area Conventional Mortgage
Conventional loans can be insured or uninsured. The insurance for conventional
loans is referred to as Private Mortgage Insurance (PMI). PMI is an insurance
policy issued to provide protection to the lender in the event of financial
loss due to a borrower’s default. Generally a loan over 80% of the property’s
value will require PMI insurance.
A strong credit history is a typical requirement for a
conventional mortgage. Lenders tend to offer lower rates to borrowers who have
clean credit histories and higher credit scores.
Charlotte NC Conventional home loan programs typically
require a 5% down payment which must come from the borrower’s own funds. After
the initial 5% contribution, the remaining funds may be a gift to the homebuyer
from a conventional allowable source. Gift funds that meet or exceed 20% of the
property’s value do not require a minimum borrower contribution.
Conforming loan limits are set by Fannie Mae and Freddie Mac
(GSEs) and are evaluated on an annual basis.
Purchase and Refinance transactions are eligible for
conventional loan programs.
Highlights of the Charlotte NC area Conventional Loan Program:
owner-occupants and investors to purchase or refinance 1-4 units,
townhouses, approved condos or Planned Unit Developments (PUDs)
Allows for the
purchase or refinance of single family second homes
Typically has a 5%
Gift funds are
allowed after the borrower’s initial 5% contribution
contributions are dependent upon the down payment and occupancy
allowed to help buyers qualify for single family residences
limits apply but will be higher than theFHA home loanlimits.
You will benefit from the Conventional
loan program if you
Have a 20% or
greater down payment
Need financing for
a second home or an investment property
Desire the ability
to waive the requirement to escrow for taxes and insurance with a down
payment of 20% or greater
Need to finance a
property that exceeds FHA loan limits
Are looking for
flexible PMI requirements for loans with down payments less than 20%
Fill out the form below to find out more information about qualifying for
a Charlotte NC area Conventional home loan. You can alsoAPPLY ONLINEfor
a faster response.