One of the most popular loan products you can apply for is a conventional mortgage. For borrowers with strong qualifications, conventional loans can be some of the most affordable and flexible options for financing the purchase of a home.
In fact, did you know that it may be possible to purchase a home with a conventional loan with just 3% down?
What is a Conventional Home Loan?
A conventional mortgage is simply a home loan that is not backed by a government agency. It can be either a conforming or non-conforming loan. By “conforming,” we mean that a loan falls within the limits set by Fannie Mae and Freddie Mac.
A non-conforming conventional loan is called a jumbo loan.
It is common to hear people refer to conventional loans and conforming loans interchangeably as if they are identical.
You can see now that this is not the case. Nonetheless, chances are good that if you are interested in conventional mortgages, you probably are referring to conforming conventional loans.
To know whether you can buy a home with a conforming loan, you need to check the conforming loan limits for the county where you are purchasing at home.
Conventional Loan Limits in Chicago, IL
Chicago is located in Cook County, IL. The conventional loan limits for Cook County are:
If you do not need to borrow more than the amounts listed above, you can purchase a home in Chicago with a conventional mortgage.
If you need to borrow more, you will need to look into a jumbo loan instead.
Although conventional conforming loan limits can vary from county to county, for all counties in Illinois, they are identical to those listed above.
Who Qualifies to Buy a Home With a
Conventional Mortgage in Illinois?
When you apply for a conventional loan, we will assess:
- Your credit score
- Your debt-to-income (DTI) ratio
- Your employment status and history
- Your income
- Your ability to make a down payment
If you need recommendations for raising your score before you apply, we can give you some pointers during your consult. We also can give you advice for how to afford your down payment.
Apply Now for a Competitive Conventional
Are you ready to purchase a home in Illinois, Indiana or Florida with a conventional mortgage? We can walk you through the application steps. To begin, please give us a call at (708) 237-4050 to schedule your free consultation.