SOOOOO MANY OPTIONS WHICH ONE IS RIGHT FOR YOU?
I stole this straing from my friends page Chris Weis - GreenState Mortgage- a Division of GreenState Credit Union - THANK YOU SIR for the great information.
If you’re starting to research your mortgage options, you might come across the terms “conforming loan” and “nonconforming loan.” But what exactly are these, and what should you know before you apply?
While both are valid mortgage options, the right choice for you will depend on your credit score, the price range you’re shopping in and other individual factors.
If you’re preparing to buy a home, start here to learn about conforming and nonconforming loans.
Conforming loans must adhere to the lending guidelines set out by government-sponsored enterprises. The rules include minimums for borrowers’ credit scores and debt-to-income ratio, as well as a maximum loan amount.
Nonconforming loans don’t have to follow the above standards. Examples of this type of loan include jumbo loans (which are for loan amounts higher than the conforming loan limit) and government-backed options like FHA loans, VA loans and USDA loans. Additionally, some local lending institutions will have portfolio loans for unique circumstances that don’t meet the standards set forth by government-sponsored enterprises.
What type of loan is best for you?
If you have good credit and need a home loan of less than $726,200 (in most parts of the country), a conforming loan might be the most affordable mortgage option. If your credit isn’t great or you need an extra-large loan amount, you’ll probably need a nonconforming loan.
Are you curious about which type of home loan is right for your situation? Get in touch so we can walk through your options.
Soooooo what do you think? Ready to talk about getting a loan for a home!