Christy Grear

More choices of loan programs mean more opportunities to fulfill your dream of homeownership. Your Allen Tate Mortgage Consultant can help you carefully weigh the benefits and risks of each option and recommend the programs that will best help you reach your personal and financial goals.


Conventional Loan Programs


Conventional Loans


A conventional loan is a mortgage loan which meets the underwriting guidelines of Federal National Mortgage Association (FNMA), known as Fannie Mae; or Federal Home Loan Mortgage Corporation (FHLMC), known as Freddie Mac, as opposed to a government-backed loan. Generally, conventional loans require a higher down payment than government loans and are limited to a certain amount (currently $647,200).


Non-Conforming Loans (Jumbo)

A non-conforming loan, also known as a jumbo loan, is a mortgage which exceeds the maximum limits established by Fannie Mae and Freddit Mac (currently $647,200). The down payment and average interest rates on jumbo mortgages are typically higher than for conforming mortgagees.



Government Loan Programs


FHA Loans

A FHA Loan is a government mortgage loan partially insured by the Federal Housing Administration, which covers lenders in most losses if a borrower defaults. FHA loans have historically allowed buyers to borrow money for the purchase of a home that they would not otherwise be able to afford. Typically, a reduced down payment of 3.5 percent is required. FHA loans are assumable for owner-occupant borrowers. Current FHA loan limit is $420,680.


VA Loans

A VA loan is a government mortgage loan guaranteed by the U.S. Department of Veterans Affairs (VA) and issued by qualified lenders. VA loans are made to active duty and honorably discharged veterans and their un-remarried widows or widowers. VA loans offer lower interest rates and require a minimal down payment or no down payment. Current VA loan limit is $647,200.


USDA (Rural Housing Loans)

A rural housing loan is a government mortgage loan guaranteed by the U.S. Department of Agriculture (USDA), which allows 100 percent financing. The home must be located in a designated USDA area and the borrowers must have certain income limits to qualify.


NC/SC State Housing Loans

Bond loans are government mortgage loans made through state-sponsored loan programs to lower the cost of homeownership for low-to-medium income borrowers, sometimes for targeted occupations or neighborhoods. This type of loan may include State Down Payment Assistance, which varies by amount and is offered subject to income limits. Learn more about first time home buyer programs in North Carolina