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Traditional,
Conventional, and Conforming Mortgage Loans |
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Traditional, Conventional, and Conforming Loans typically
have higher loan limits than FHA and VA loans;
with loan amounts up to $359,650 Single Family
Residence (SFR) with lower interest rates than other
loan programs. Lenders require as little as 3% down to those who
qualify for new home purchases.
The table below lists the 2005 and 2006 Single-Family maximum
original loan amounts.
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Property Type
|
2006 Loan Limit
(Except for AK, HI, GU & VI)
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2005 Loan Limit
(Except for AK, HI, GU & VI)
|
2006 Loan Limit
for AK, HI,
GU & VI
|
2005 Loan Limit
for AK, HI,
GU & VI
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| 1-unit |
$417,000 |
$359,650 |
$625,500 |
$539,475 |
| 2-unit |
$533,850 |
$460,400 |
$800,775 |
$690,600 |
| 3-unit |
$645,300 |
$556,500 |
$967,950 |
$834,750 |
| 4-unit |
$801,950 |
$691,600 |
$1,202,925 |
$1,037,400 |
Previous
Years Loan Limits:
| Property
Type |
2005
Loan Limit
(Except for
AK, HI, GU & VI) |
2004
Loan Limit
(Except for AK, HI,
GU & VI) |
2005
Loan Limit
for AK, HI,
GU & VI |
2004
Loan Limit
for AK, HI,
GU & VI |
| 1-unit |
$359,650 |
$333,700 |
$539,475 |
$500,550 |
| 2-unit |
$460,400 |
$427,150 |
$690,600 |
$640,725 |
| 3-unit |
$556,500 |
$516,300 |
$834,750 |
$748,950 |
| 4-unit |
$691,600 |
$641,650 |
$1,037,400 |
$962,475 |
| CONVENTIONAL
LOAN LIMITS |
| |
2002
|
2003
|
2004
|
| One-Family |
$300,700 |
$322,700 |
$333,700 |
| Two-Family |
$384,900 |
$413,100 |
$427,150 |
| Three-Family |
$465,200 |
$499,300 |
$516,300 |
| Four-Family |
$578,150 |
$620,500 |
$641,650 |
Mortgages
exceeding these loan amounts are called "Jumbos".
Jumbo Loans up to $2,000,000.
A Traditional
fixed-rate
mortgage offers a 15, 20 or 30 year term and some lenders offer a
40-year term allowing a lower payment and/or, a bigger house/home loan.
Conventional loans also incorporate Adjustable
Rate Mortgages called an ARM.
See
Fixed and ARM
for details.
Conforming
also implies that borrowers debt to income ratios fall within specified
limits,
- stable
employment
- favorable
credit history with emphasis on mortgage or rental payment 2 year history
- bankruptcies,
defaults, foreclosures, other credit obligations, collections
- available
lines of credit (credit cards etc...)
- cumulative
debt, number of obligations
- any derogatory
items such as consumer credit assistance
- and Federal
indebtedness including child support and student loans.
Please see non-conforming lending for
Imperfect Credit Loans
Please see our Credit section for a better understanding
of Credit (simplified),
found on our Information page.
Traditional,
Conventional, and Conforming Loans are among the most
popular sources of mortgage funding. The Federal Government
regulates but not insures these loans via HUD (The Department
of Housing and Urban Development) and are funded by the private investment
market and are rarely assumable.
These
home loans meet lender guidelines specifying property and borrow requirements
that make them eligible for purchase (from the lender) by one of
the two government chartered corporations created to support the
secondary mortgage market. These
corporations are the Federal Home Loan Mortgage Corporation
(FHLMC or Freddie Mac) and the Federal National Mortgage Association
(FNMA or Fannie Mae).
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| ©
MTG Brokers Corp. 2003, 2004 |
MTG Brokers
Corp. conducts business as a COMMERCIAL Mortgage Broker throughout the U.S.A.
(All 50 States) including Loan Origination, Processing, and Commercial Financing
Consultation
ALABAMA, ALASKA, ARIZONA, ARKANSAS,
CALIFORNIA,
COLORADO, CONNECTICUT,
DELAWARE, FLORIDA,
GEORGIA, HAWAII, IDAHO, ILLINOIS, INDIANA, IOWA, KANSAS, KENTUCKY,
LOUISIANA, MAINE, MARYLAND,
MASSACHUSETTS, MICHIGAN, MINNESOTA, MISSISSIPPI, MISSOURI,
MONTANA, NEBRASKA, NEVADA, NEW
HAMPSHIRE, NEW JERSEY, NEW MEXICO, NEW YORK, NORTH CAROLINA,
NORTH DAKOTA, OHIO, OKLAHOMA,
OREGON, PENNSYLVANIA, RHODE ISLAND. SOUTH CAROLINA,
SOUTH DAKOTA, TENNESSEE, TEXAS, UTAH,
VERMONT, VIRGINIA, WASHINGTON, WEST VIRGINIA, WISCONSIN, WYOMING
AL, AK, AZ, AR, CA, CO,
CT, DE, FL, GA, HI, ID, IL, IN, IA, KS, KY,
LA, MA, MD, ME, MI, MN,
MS, MO,
MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA,
RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY
MTG Brokers Corp. conducts business as a RESIDENTIAL Mortgage Broker in Colorado
that can also
originate Residential financing in the following States under the license of
an affiliated mortgage contractor:
Alabama, Alaska, Arkansas, Arizona---Pending, California,
Colorado, Connecticut, District Of Columbia, Delaware,
Florida, Georgia, Idaho, Illinois---Submitted & Pending, Kansas---Submitted
& Pending, Louisiana---Pending, Maine,
Maryland, Massachusetts, Missouri, Michigan *--- 2nd Mortgage Submitted &
Pending, Nevada, New Hampshire *,
New Jersey *--- 2nd Mortgage Submitted & Pending, New Mexico, New
York, North Carolina, Ohio, Pennsylvania,
Rhode Island--- Submitted & Pending, South Carolina--- Submitted
& Pending, Tennessee, Texas, Vermont,
Virginia, Washington--- Submitted & Pending
AL,AK,AR,CA,CO,CT,DE,FL,GA,ID,ME,MD,MA,MO,MI*,NV,NH*,NJ*,NM,NY,NC,OH,PA,TN,TX,VT,VA.
* We Are Not Licensed For Residential 2nd Mortgages