Before you start looking for a conventional loan with 90 percent or more in financing, you should understand a little about the loan. A simple understanding of conventional loans helps you find the right loan program. This is true if you need the lender to finance most of your home purchase or refinance.
Defining a Conventional Loan
First of all, a conventional loan does not have any type of government protection. The lender sets their guidelines based on the requirements of Fannie Mae or Freddie Mac. Fannie and Freddie are two mortgage institutions that buy conventional loans. They purchase loans up to $417,000 in lender financing. To ensure that Fannie and Freddie buy the loans, the lender follows the guidelines the two institutions lay out. Because of the guidelines, it is very difficult to obtain up to 97 percent or more in financing, but not impossible.
Securing up to 97 Percent or More in Financing
Fannie Mae and Freddie Mac sets out guidelines that require you to put a minimum of 10 percent down on a mortgage loan. Private lenders follow this guideline which makes it very tricky to find a higher amount of financing. However, lenders do offer loans that do not follow Fannie and Freddie requirements; therefore, you can obtain up to 100 percent financing through other loan programs. In order to secure the higher financing, you will need some help.
How Centex Capital can Help
In order to secure 97 percent or more in financing, you need a team of experts. You require a team that has a large network of lenders ready to assist you in your financing needs. We have that network, which makes it far easier to obtain a higher amount in financing. We help you find reasonable terms with low interest rates.
Contact us at (800)842-2910 or email us.