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Austin Conventional Home Loans

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Austin Conventional Mortgage Lender

Conventional Loans In Austin

What is a Conventional Home Loan?

The Consumer Financial Protection Bureau (CFPB) defines a conventional loan as “any mortgage loan that is not insured or guaranteed by the government, such as Federal Housing Administration, Depart of Veterans Affairs, or Department of Agriculture loan program”

There are two types of conventional loans:

  • Conforming Loans – 

Mortgages following the guidelines and conditions set forth by Fannie Mae and Freddie Mac are called conforming loans. Conforming Loan lenders approve and finance the loans before selling them to investors. The loans are sold to investors on open markets with lower interest rates than non-conforming loans. The conforming loan limit determined by the Federal Housing Finance Agency is $647,200 in most counties.

All conforming loans are conventional loans, but not all conventional loans are conforming loans. Conventional-conforming loans are the most common type of mortgage. Lenders require a FICO score of 620 to qualify for a conforming loan. The down payment requirement could be 3 – 5% of the purchase price. The loan must carry private mortgage insurance (PMI) if a borrower doesn’t come up with a 20% down payment.

  • Non-Conforming Loans – 

Any other home loan that does not meet the requirements of government-sponsored enterprises (GSE) Fannie Mae and Freddie Mac is non-conforming. A loan might not conform for two fundamental reasons: (a) The loan amount exceeds the conforming loan limit, or (b) it fails to meet a condition established by the Federal Housing Finance Agency.

 Types of Non-Conforming Loans

  • FHA Loans 

An FHA loan is a mortgage with the backing of the federal government. The Federal Housing Administration insures it under HUD’ss authority or the Department of Housing and Urban Development. Many first-time home buyers use FHA home loans due to their lenient qualification requirements.

  • VA Loans

The Department of Veterans Affairs partially backs or guarantees VA loans, which are zero-down mortgage options offered by private lenders. It is reserved for US servicemen and women and their eligible spouses.

  • USDA Loans

USDA home loans are mortgages used to finance properties in rural areas. They offer a 0% down payment and have restrictive income and property guidelines.

  • Jumbo Loans

A jumbo loan is a type of mortgage used to finance properties that are too expensive for a conventional conforming loan. According to the Federal Housing Finance Agency, the maximum amount for a conforming loan is $647,200 in most counties. A jumbo loan is needed for homes that exceed the conforming loan limit.

Apply for a Conventional-Conforming Loan in Austin

Purchasing a home is a significant accomplishment, and Capital Home Mortgage can help make the process simpler and more pleasant, as it should be. We are a full-service home mortgage company with a wide selection of mortgage solutions and a dedication to providing our customers unmatched customer care.

Call us today at (512) 237-7400 and talk to our Austin Home Loan Specialists to get started on your path to homeownership!

Why Austin is Choosing Capital Home Mortgage...

Close On Time with True Approval

Control of the Loan from the Application to Funding.

Great Austin Rates / Low Fees

Direct Mortgage Lender Providing Competitive Rates and Low Fees.

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7  Day a Week Support from Application to Final Mortgage Payment. 

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Capital Home Mortgage Austin is dedicated to offering Great Austin Mortgage Rates.

Call now to speak with a Loan Officer or request a no obligation custom rate quotes.

Benefits of Austin Conventional Home Loans

Conventional Purchase Loans are one of the most popular types of loans and a great choice for many home buyers. Conventional mortgages can be used to purchase any type of occupancy, while FHA, USDA, VA and Native American Loans are restricted to primary residence only. Conventional mortgages are great for borrowers that have higher credit scores and typically have easier qualifying.  

  • Freddie Mac and Fannie Mae Insured
  • Primary, Second or Investment Property
  • Single and Multi Family, Condo’s & Manufactured Homes
  • Mortgage Insurance Options
  • Lower Rates and Better Terms
  • 97% Loan to Value – Conforming – 647,250 Max Loan
  • 95% Loan to Value – High Balance
  • Primary Residence
    • Single Family – 95%  ( 97% First Time Buyer )
    • Duplex – 85%
    • Tri / 4 Plex – 80%
  • Second Home
    • Single Family – 90% 
    • Duplex – N/A
    • Tri / 4 Plex – N/A
  • Investment Property
    • Single Family – 85% 
    • Duplex – 75%
    • Tri / 4 Plex – 75%
Know Your Buying Power
Have Questions?
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Not Sure? Take a Look at Other Austin Mortgage Programs

Austin Mortgage Team

Conor Hayhurst

Managing Director
NMLS 743506

Kelly Cameron

Loan Officer
NMLS 178093

Kelvin Thompson

Loan Officer
NMLS 2050042

Jonathon Cummins

Loan Officer
NMLS 270657

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