The Federal Housing Finance Agency (FHFA) annually publishes compliant loan limit values that apply to all conventional loans granted to Fannie Mae. These include basic and high-cost area lending limits; high-cost areas vary by geographic location. Victoria Araj is a section editor for Rocket Mortgage and held positions in mortgage banking, public relations and more during her more than 15 years with the company.
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It's possible to buy a home with a down payment of as little as 3%, and you can even buy a home with no down payment if you qualify for a VA or USDA loan. If you have a down payment of less than 20%, you may have to buy private mortgage insurance, pay a higher interest rate, or face more competition in the housing market.
Investors interested in real estate may want to consider markets outside their own borders. From potential returns to portfolio diversification, buying international properties has its advantages.
So what are the requirements to get a construction loan? There are many aspects to consider when applying for construction loans, such as cooperation from the builder and obtaining permits from local communities, as well as the construction schedule with complete plans and an accurate budget. Once the builder finishes your new home, your loan will automatically convert to a conventional mortgage, or you'll have to repay the construction loan and apply for a mortgage for the property.
Down payment for your primary residence Some lenders may require you to have a 5% down payment, while other lenders may only require 3%. If you have a credit score higher than 620 points, your lender can give you access to loan options with a lower down payment.