Things You Should Know About Conventional Loan
If you are in the market for a home in Blacksburg or elsewhere in Virginia, a conventional mortgage is a great way to save money on your down payment and get a loan term and mortgage rate which suit your needs.
If you buy a home in 2020, you will discover that it is easier to qualify for conventional mortgage than it was in 2019 based on the amount that you need to borrow. That is because the conventional loan limits have been raised across the country for 2020.
The town of Blacksburg is located in Montgomery County. In 2019, the conforming loan limits for Montgomery County were:
• One unit: $484,350
• Two units: $620,200
• Three units: $749,650
• Four units: $931,600
In 2020, the conforming loan limits for Montgomery County, VA, are:
• One unit: $510,400
• Two units: $653,550
• Three units: $789,950
• Four units: $981,700
These are the same as the conventional loan limits for most locations across the US in 2020. As Christiansburg is the county seat, these are also the Christiansburg conforming loan limits.
What about more expensive areas in Virginia? The loan limits for these areas have increased as well. For example, in Fairfax County, these were the 2019 loan limits:
- One unit: $726,525
- Two units: $930,300
- Three units: $1,124,475
- Four units: $1,397,400
Here are the 2020 conventional loan limits for Fairfax County:
- One unit: $765,600
- Two units: $980,325
- Three units: $1,184,925
- Four units: $1,472,550
So, whether you are shopping for a home in Montgomery County where prices are fairly typical or you are shopping for home in one of the higher cost areas of Virginia, you can take advantage of the higher conventional loan limits for 2020 to qualify for more financing than you would have in 2019.
What Are Some Reasons to Apply For a Conventional Mortgage in Virginia?
- Many homebuyers are not aware that a conventional mortgage down payment can be as low as 3%. That is even lower than the 3.5% possible with an FHA loan.
- Conforming loans can carry fixed or adjustable mortgage rates with a variety of loan terms suitable for different budgets and goals.
- The straightforward and routine nature of the underwriting process can speed up the conforming loan application process as compared to that of some other types of mortgages.
- You can buy a home with a conventional loan in Virginia without paying for private mortgage insurance (PMI).
- Qualifying for a conforming loan is less intensive than qualifying for a jumbo mortgage. Your credit score and DTI ratio do not need to be as ideal as they would for jumbo financing. Further, you need only order one appraisal, not two.
Because of their flexibility and simplicity, conforming loans in Virginia remain among the most popular loan options.
Apply Now for a Conventional Loan in VA
Whether you are looking for a home in Blacksburg, Christiansburg or anywhere else in the state of Virginia, First Residential Mortgage makes it easy to qualify for a competitive conventional loan. To schedule your consultation today, please call (540) 838-5868.
