Most of our loan activity falls in the realm of Conforming Financing. This makes up approximately 78% of all mortgage lending. The term “Conforming” describes the standard loan options offered to qualified borrowers with a certain loan size. The loan limits have been steadily rising overe the last decade and we presently stand at a 2018 Conforming loan maximum of $453,100 for most areas of North Carolina. Keeping your loan size at or below the conforming limit makes the loan more marketable and therefore will afford a more attractive rate and terms. Even with a sales price greater than $500,000, consider creativity in keeping the primary loan amount at or below $453,100 to maximize your options. Ask us about ideas on how to structure that loan to create the best Situation for your specific needs.
Within the realm of Conforming loans, there are several subsets that offer specific features for Homeowners ranging from First Time buyers to buyers purchasing their 10th investment property. The traditional conforming loan will be sold and serviced by one of the two “quasi-governmental agencies” best known as Fannie Mae and Freddie Mac. The Federal National Mortgage Association and the Federal Home Loan Corporation have special governmental permissions that allow them to operate and facilitate the spreading out of Money across the country so that all communities have equal opportunities. Within those Parameters are a uniform set of underwriting guidelines and rules that make the process of qualifying much easier to understand. “Conforming” simply means the loan amount is below the above named threshold. So any loan at or below 453,100 would be a conforming loan. Inside of that genre, we have a multitude of options. Whether you are putting 50% down or you need a max LTV program, Conforming loans offer a wide variety that will go all the way up to 97% financing. Purchasing a townhome for $125,000? Program choices abound. Looking for a $453,100 max conforming loan on your dream vacation home or primary residence? Options are there for you. Ask us about what we can do and how we might structure the loan to best fit your financial goals.