It is that time of year again when the Federal Housing Finance Agency (FHFA) announces the new conventional loan limits for the year ahead, and there is good news for 2020. The limits have increased, including in Indianapolis and the surrounding region.
Benefits of a Conventional Mortgage
Indianapolis is located in Marion County. The Marion County conventional loan limits in 2020 are:
- One unit: $510,400
- Two units: $653,550
- Three units: $789,950
- Four units: $981,700
These were the conventional loan limits in Marion County for 2019:
- One unit: $484,350
- Two units: $620,200
- Three units: $749,650
- Four units: $931,600
So, with an increase from $484,350 for a single unit to $510,400 for a single unit (and corresponding increases across the board), more borrowers have a chance at qualifying to obtain the financing they need with a conventional loan in 2020 than in 2019.
Here are some of the benefits of conventional mortgages in Indianapolis:
- Down payments for conventional mortgages can be very low.
- Conventional loan products can have the option to have private mortgage insurance (PMI) paid by the borrower or lender can pay the mortgage insurance on behalf of the borrower.
- You only need a single appraisal. You can contrast this with the typical requirement for two appraisals if you get a jumbo loan over 1 million. Only needing one appraisal simplifies the loan application process and makes it more affordable and less stressful.
- Qualifying for a conventional loan with a competitive interest rate is easier than doing the same for a jumbo loan with a comparable interest rate. Plus, the minimum credit score required to get a conventional loan is lower than that (around 700) required to get a jumbo mortgage. Likewise, the debt-to-income (DTI) ratio requirement to get a jumbo loan is lower than the corresponding requirement to qualify for a conforming loan.
- Conventional loans are flexible. Because conventional mortgage products are more common than jumbo mortgage products, you have a more diverse selection to choose from. You should be able to find a loan with a rate format and term which is ideal for your needs.
- Enjoy fast and easy underwriting. The conventional loan process is one which most mortgage companies are well-versed in. So, when you apply for a conventional mortgage, you should be able to move through the process rapidly and with few obstacles.
- Close quickly on a property. When you can complete the mortgage process swiftly, you can close fast. When other buyers are eyeing a property, it is important to be able to finish the transaction as quickly as possible. That way, you will not lose the house you want to another purchaser.
Apply Now for a Conventional Mortgage in Indianapolis
Conventional mortgages have many benefits, especially for borrowers who want to make a low-down payment. Do you qualify for a conventional loan in Indianapolis? Find out today by calling Grandview Lending Inc. at (317) 255-0062. Whether you need a conventional loan, jumbo loan, FHA loan, or another type of mortgage, we will match you with the affordable product that fits your requirements.