A conventional loan is any mortgage not insured or guaranteed by a government agency. Conventional loans follow guidelines set by Fannie Mae and Freddie Mac and are the most commonly used loan type in the country. As a C2 Financial mortgage broker with access to nearly 100 lenders, Rob Tennyson finds highly competitive conventional rates that banks simply cannot match.
If you are buying in Los Angeles or Orange County, high-balance conventional loans let you borrow from $832,751 up to $1,249,125 while still staying within Fannie Mae and Freddie Mac guidelines. That means better rates than a true jumbo loan with a minimum 5% down payment. This is a major advantage for buyers in these high-cost markets.
Want to avoid jumbo loan guidelines but only have 10% down? The 80/10/10 is a great strategy. You put 10% down, get a first mortgage for 80% of the purchase price (within conforming limits), and take out a second mortgage for the remaining 10%. This keeps your first mortgage away from stricter jumbo requirements and can save you a significant amount. Ask Rob if this makes sense for your situation.
If you put less than 20% down, you will pay PMI. The good news is that PMI cancels automatically once your loan reaches 80% loan-to-value. Unlike FHA mortgage insurance, it does not stay for the life of the loan. Some lenders also offer lender-paid PMI to eliminate the monthly cost entirely.
Rob Tennyson has helped hundreds of buyers secure conventional financing at competitive rates. Whether it is your first home, a move-up purchase, or an investment property, Rob finds the right loan from his network of nearly 100 lenders. Apply by clicking here or call 714-400-2317.
.jpg)
