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Maryland Home Search: Conventional Loans
Conventional Loans are secured by
government sponsored entities or GSE's such as
Fannie Mae
and Freddie Mac or by private investors for loan amounts
higher than the limits set by the GSE's. Conventional
loans can be made to purchase or refinance homes with
first and second mortgages on single family to four family
homes.
In general, Fannie Mae and Freddie Mac's single family,
first
mortgage loan limit is $333,700 in 2004. This limit
is reviewed annually and, if needed, changed to reflect
changes in the national average price for single family
homes. The current loan limit applies to all conventional
mortgages delivered after January 1, 2004.
2004 Conventional Loan Limits
First mortgages
-
One Family loans: $333,700
-
Two Family loans: $427,150
-
Three Family loans: $516,300
-
Four Family loans: $641,650
Note: Maximum original loan amounts are 50 percent higher
for first mortgages on properties in Alaska, Hawaii, Guam
and the U.S. Virgin Islands.
Second Mortgages
- $150,350 (in Alaska, Hawaii, and the US Virgin Islands:
$225,525)
Loans which are larger than the limits set by Fannie Mae
and Freddie Mac are called jumbo loans.. Because jumbo
loans are not funded by these government sponsored
entities, they usually carry a higher
interest rate and
some additional underwriting requirements. A strategy to
lower your overall interest payments if your purchase or
refinance balance is above $333,700 is to use a
combination of both first and second trust money, referred
to as an 80/10/10, 80/15/5 or 80/20. Every situation is
different, but it is one more option to consider.
In addition to common loan structures such as fixed rate,
adjustable rate and balloon loans, Fannie Mae and Freddie
Mac also have loan programs for low to no down payments,
community lending and affordable housing initiatives,
construction to permanent,
home improvement and reverse
mortgages.
Home -
Up -
Conventional Loans -
FHA Loans -
Fixed Rate Loans -
Influencing Factors
Jumbo Loans -
Loan Differences -
Low Down Payment Loans -
Mortgage Loans
Secondary Market Loans
- Subprime Loans -
VA Loans |
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