Understanding Conventional & Jumbo Mortgages
Do you have a 5% or greater down payment, PERFECT credit and you can document your income? If so, a conventional (Fannie Mae or Freddie Mac Conforming) loan is probably the best option for you. If not, you may want to look at a FHA or Federal Housing Authority loans, a 100% RD or USDA Rural Development loan, or if you are a veteran or spouse of a veteran a VA or Veteran Administration loans may be the best option.
Conforming loans tend to offer the homebuyer the lowest rates and mortgage insurance expenditures. The current maximum loan amount for a single family residence in the State of Louisiana is $424,100. A homebuyer seeking to purchase a duplex will have a maximum loan amount of $533,850, a triplex is $645,300 and the maximum loan for a four-plex purchase is $801,950. For larger home purchases that exceed $417,000 the borrower would need to apply for a Conventional/Jumbo Loan. Since there is no private mortgage insurance (PMI) on Jumbo Loans, they tend to require stricter credit and income requirements and a larger down payment.
Conventional (or conforming) loans and Jumbo Loans allow the borrower the most amount of options when it comes to fixed or variable rate programs. The borrower can choose a 30 year fixed rate, 15 year fixed rate or one of several shorter term fixed rate periods. These may be 7 year fixed, 5 year fixed or 3 year fixed. These shorter term fixed rates can also be amortized over 10 years, 15 years, 20 years or 30 years. These shorter term programs allow a borrower who may not intend to live in a property for an extended period the option of reducing their interest expense based on the shorter time they need the mortgage.
These loans tend to be written by local banks and direct mortgage lenders. Since most banks charge an application fee to even determine if a borrower qualifies for these programs, we recommend a direct lender who never charges our clients upfront fees!
Brandon was very helpful during my home search. He was quite resourceful and responsive. I would highly recommend him if you’re looking to purchase or sale your home.
Brandon did a great job selling our home. He was always available and kept us informed during the process. Brandon is very knowledgeable and more importantly he is honest. I highly recommend Brandon to anyone looking to buy or sell a home.
Working with Smart Move Real Estate and Jay Johnson was an absolute pleasure. They not only got my home sold for top dollar, they also saved me a lot of money in the process. Jay went above and beyond to educate and assure me throughout the process. There is no other Realtor that I would even consider referring to my friends and family!
My husband and I purchased our dream home in April 2015. Prior to buying our home, we searched and worked with few real estate agents. Finally our headache was over!!! We meet with Brandon and just by talking to him we felt confident in him. He is very professional and knows his work. He is very prompt and very helpful. My husband and I highly recommend him. He made sure that we were in our dream home as promised. Brandon takes care of his clients. Becoming a homeowner has been the best thing we…
Brandon was very helpful and knowldgeable. My wife and I were new to the area and looking for our first house Brandon was willing to work with us around my work schedule and was very kind in allowing our young son to come along on house searches and helping to keep him entertained as well .
We really enjoyed working with Brandon while searching for our new home. He let us know what to expect and lead us through the whole process so that it didn’t have to be a stressful one. He also responded to our calls and texts quickly, with no matter how small or big our question or concern was. I would highly recommend him to anyone who is even thinking about buying or selling their home.
Derek is a great guy! It’s been months since we bought our home and I can still call him if I have any questions. If I ever buy another house it will definitely be with him.
I didn’t have the best experience with the Realtor who sold me my house. So, naturally I was a bit skeptical when Derek and Jay from Smart Move told me that they could get my house sold for less commission than other agents were telling me that they would charge me. Well, they didn’t just get my home sold quickly and for a great price, their knowledge and experience kept me from making a mistake that could have cost me tens of thousands of dollars. I am so thankful I decided to allow them …
I am almost 60 years young and have needed to depend on realtors about 5 times in my life, either with buying new property or selling old. Derek was the very first that came with no irritation, or that feeling that I can’t wait to never see this person once the deal is done! With changes in life through new housing being hard enough, Derek Overstreet will become a family friend, due to his professional and trusting guidance as your realtor.
Derek was always ready to meet me and show homes when it was convenient to me. When he understood what was most important to me in a home, he would diligently research new listings and send them to me. He worked for me a few months prior to my move from Colorado, never forgetting to keep me informed.