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Leasing a Home

Loan Types

Traditional & Government Issued Loans and Programs

Loan types

2024 FHFA Loan Limits for Conventional and VA loans in Illinois & Florida (with the exception of Monroe County) are:

$766,550 - One-Unit Limit

$981,500 - Two-Unit Limit

$1,186,350 -Three-Unit Limit

$1,474,400 - Four-Unit Limit

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Conventional Loans:
Fixed & Adjustable-Rate Mortgage

Most popular loan types when buying a home or refinancing. Both fixed & adjustable-rate mortgage loans are available for conventional conforming loans, jumbo (non-conforming) loans and FHA or VA programs.

To qualify for a conventional loan, it is generally required to have a credit score of at least 620. Borrowers with credit scores of 740 or higher may benefit from lower down payments and more favorable conventional loan rates. However, specific lender criteria may vary.

Regarding the Debt to Income (DTI) aspect, most conventional loans permit a maximum DTI ratio of up to 45 percent. In some cases, we may consider higher DTI ratios, such as 50 percent, if borrowers can demonstrate compensating factors, such as maintaining a savings account balance equivalent to six months' worth of housing expenses.

Conforming Loans

A conforming loan, falling within the category of conventional mortgages, must adhere to the fundamental eligibility criteria and loan limits established by the Federal Housing Finance Agency (FHFA), which are followed by entities like Fannie Mae and Freddie Mac:

  • Maximum Limit: In 2024, the FHFA Loan Limits for Conventional and VA loans in Illinois and Florida (excluding Monroe County) have been set at their maximum limit as follows:


  • $766,550 for One-Unit Properties

  • $981,500 for Two-Unit Properties

  • $1,186,350 for Three-Unit Properties

  • $1,474,400 for Four-Unit Properties


  • Credit Score: To qualify for a conventional loan, you will typically need a credit score of at least 620. Borrowers with credit scores of 740 or higher can make lower down payments and tend to get the most attractive conventional loan rates, however.


  • Debt to Income Ratio: Most conventional loans allow for a DTI of no more than 45 percent, but sometimes ratios as high as 50 percent if the borrower has compensating factors, such as a savings account with a balance equal to six months’ worth of housing expenses.


One Republic Mortgage can assess your eligibility based on your individual financial situation.


  • Competitive interest rates

  • Lower down payment options for eligible borrowers

  • Higher loan amount limits

  • Opportunity to avoid Private Mortgage Insurance (PMI) with a 20% down payment

  • A wider range of property types may be financed



  • PMI is required if the down payment is less than 20%

  • A minimum credit score of 620 is usually expected

  • The Debt-to-Income (DTI) ratio must typically remain under 45%-50%


Fixed-Rate Mortgages (Conventional, FHA, and VA):

In a fixed-rate loan, the interest rate never changes. This is a popular choice for many borrowers, especially if they plan to stay in the home for a long time. The stability of a fixed-rate home loan lets buyers purchase with confidence, knowing that their principal and interest payments will never change, making budgeting more consistent.

The most popular form of fixed-interest home financing is the 15,20 and 30-year fixed mortgage amortization. Regardless of the loan term (meaning the length of the loan), the repayment works the same. Each monthly payment consists of part principal and interest, progressively the principal portion increasing and interest decreasing.  The longer the term, the lower the payment.


  • Monthly payments don’t change over the life of your loan

  • Protection from rising interest rates for the full term of the mortgage


  • The total interest paid is higher on a longer-term loan

  • Typically, fixed-rate loan rates are slightly higher than Adjustable-Rate Mortgages


Adjustable-Rate Mortgage (ARM):

The opposite of a fixed-rate mortgage is an adjustable-rate mortgage (ARM). ARMs are 30-year amortization payment loans, with interest rates that fluctuate varying on the market. Initially, there is an introductory period of fixed interest that is typically 5, 7, or 10 years.

After the preliminary period ends, rates will change based on the market. The safeguard in place includes rate caps, which dictate how much the interest rate can change. Rate caps can prevent rapidly rising interest rates. This type of mortgage can be good for someone purchasing a starter home and doesn’t expect to live there for the loan’s full term, or an investor looking for a fix and flip.


  • Lower interest rates for the initial fixed period


  • Monthly payments may increase and change after the initial fixed period is over

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