The most common type of prime loan you can use to purchase a property is called a conventional loan. Conventional loans conform to the maximum loan limits established by Fannie Mae and Freddie Mac. Unlike certain other types of loans such as FHA loans, they are not backed up by government funds.
Typically, the timeframe for paying off a conventional loan will range anywhere from 10-30 years. Down payments may be as low as 3% or as high as 20%. Fees and terms governing conventional loans depend on a number of different factors, including your credit score, borrower profile, the property you are purchasing, the down payment you provide, and the lender you select.
What is the Maximum Loan Limit for
Conforming loan limits throughout the US have been raised for 2023. As of this year, the conventional loan limit for Miami-Dade county is $726,200. This is for single-unit properties, and is the same loan limit which applies to most counties across the country. If you need a larger loan, you may need to apply for a jumbo loan.
Basic Qualifications for a Miami
Borrowers who want to be approved for a conventional loan in Miami will need to meet the following requirements:
- You must be purchasing a qualifying property, as stipulated above. Conventional loans are for properties worth $453,100 or less.
- You should have a solid credit score. The higher your score is, the better. A higher score typically will qualify you for better rates, terms, and fees. You need enough to cover your down payment.
- Making a higher down payment can sometimes free you from the requirement to purchase private mortgage insurance. There are however some great opportunities available for favorable loan terms even with a lower down payment. Through our wide network of lenders, we can help you find a competitive loan even if you cannot afford a high down payment. Your income-to-debt ratio is important as well.
- Ideally, your debts should comprise less than 50% of your total income. There are some exceptions, however. If your assets are worth enough to offset any perceived shortcomings in your income-to-debt ratio, you should still qualify for a conventional loan.
Applying for a Conventional Loan
in Miami-Dade County
With so many factors impacting the interest rates, fees and terms of conventional loans, you want to make sure that you are getting an affordable loan which is going to meet your needs.
Lending Bankers Mortgage has established relationships with more than 130 lenders in the Miami area. This allows us to connect you with a diverse selection of conventional loans. That way you can choose the rates and terms which are right for you. If you are ready to get started, please give us a call at (786) 220-1100.