Conventional Mortgages
Residential
Construction
Residential
Conventional Mortgages can provide funding for a primary or second home/vacation house
Investment
Construction
Residential
Conventional Mortgages can provide funding for investment properties
Construction
Construction
Construction
Conventional Mortgages can be used to build or rehab a property
Residential
Primary or Second Home
You can use a conventional mortgage to purchase a primary or second home. Two important pieces of information regarding these loans are the 2023 Conforming Loan Limits and the Fannie Mae/Freddie Mac Eligibility guidelines.
The 2023 Conforming Loan Limits for the purchase of a principal residence are as follows...
- 1 Unit Property - $726,200
- 2 Unit Property - $929,850
- 3 Unit Property - $1,123,900
- 4 Unit Property - $1,396,800
The Fannie Mae Eligibility guidelines for the purchase of a principal residence, meaning the Loan to Value maximums are as follows...
- 1 Unit Property - 95% (certain products can go to 97%)
- 2 Unit Property - 85%
- 3-4 Unit Property - 75%
The Freddie Mac Eligibility guidelines for the purchase of a principal residence, meanting the Loan To Value maximums are.....
- 1 Unit Property - 95% (certain products can go to 97%)
- 2 Unit Property - 85%
- 3-4 Unit Property - 80%
Both Fannie Mae and Freddie Mac have a maximum Loan to Value of 90% for the purchase of a second home. Second Homes can only be 1 unit properties with a max loan limit of $726,200.
Investment
Investment Mortgage Guidelines
You can use a conventional loan to purchase an investment property. The same conforming loan limits will apply to these mortgages but they will have different maximum Loan to Values.
Fannie Mae and Freddie Mac have the same guidelines...
- 1 Unit Property - 85% LTV
- 2-4 Unit Property - 75% LTV
You can hold as many as 10 conventional mortgages at a time. This allows you to buy multiple investment properties with the best terms available.
Construction
Additional Information
Conventional construction or renovation loans will follow the same guidelines as residential loans as it pertains to loan limits and other ratios.
These loans can fund both the purchase and repair costs of a property. The loan to value percentages are based off of the properties After Repair Value (ARV)
