Conventional Loan Limits

The current conventional loan limit is $453,100, but Fannie and Freddie do allow higher limits in some areas. A conventional loan limit in some parts of California may be as high as $612,950. The highest limit available is in Honolulu, Hawaii at $721,050. Keep in mind that these are loan limits and not home price limits. In any area of the country, someone refinancing a $1 million home could receive a conventional loan of $453,100.

Homeowners who refinance a multi-unit home have access to higher loan limits; standard limits are as follows:

+1-unit home: $453,100

+2-unit home: $580,150

+3-unit home: $701,250

+4-unit home: $871,450

Income and Asset Documentation

Just like with most other loan types, you will provide documentation proving your income and assets. Documentation that may be required includes:

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60 days of bank statements, all pages

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30 days of pay stubs

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2 years tax returns if self-employed or have rental properties or non-salary income (retirement pension, etc.)

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2 years W2s

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Social security, retirement, and/or pension award letters and 2 years’ 1099s

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Rental agreements for any owned investment properties

Debt-to-income ratio

Lenders like to see a certain DTI ratio; a percentage of monthly income spent on debt payments. This can include mortgages, student loans, auto loans, credit card payments and child support.

About 60% of all mortgage applicants choose conventional loans because of their great rates, lower costs and home buying flexibility. One benefit to securing a conventional mortgage is that they generally pose fewer hurdles than government backed agencies. Conventional loan applicants typically have shorter and less complicated home loan approvals. Additional program highlights are:

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Can be used to buy primary or secondary homes, or rental property

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Available in fixed rates, adjustable rates (ARMs), and terms from 10-30 years

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Down payments as low as 3%

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Zero monthly mortgage insurance with a down payment of at least 20%

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Low mortgage insurance costs

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When home equity reaches 20%, mortgage insurance can be canceled.