What is a Conventional Mortgage?
A conventional loan is a loan that is not FHA insured or VA guaranteed and is below a set maximum value that is established each year.
Maximum Value table
| Conventional Loan Limits – Miami Dade – 2022 | |
| Number of Units | Continental U.S. |
| 1 | $647,200 |
| 2 | $828,700 |
| 3 | $1,001,650 |
| 4 | $1,244,850 |
Is PMI required?
PMI is required on all loans where the borrower puts down less than 20 % of the loan amount at closing.
This monthly mortgage insurance payment creates a pool of money, which will help compensate the lender if it takes a loss on a foreclosure sale.
An investment in knowledge pays the best interest
What kind of property can i buy?
Conventional mortgages are issued for investment properties, primary residences and second homes.
Can you have seller concession?
Seller concessions are closing costs the seller agrees to pay. They can make a home more affordable for the buyer, and they can help the seller close the deal.
- The amount of a conventional mortgage seller concession depends on the LTV:
- 75% LTV or less = 9% seller concessions.
- 75% – 90% LTV = 6% seller concessions.
- 90% or more = 3% seller concessions.
- Note: Investment properties have a maximum 2% seller concession.
Gifts and late fee
- The late fee is 5% of the monthly P&I.
- Down payment gifts are allowed.
