One of the most common types of loans that home buyers come across is the Conventional loan. These loans are not backed by the government, like FHA and VA loans.
Conventional loans follow the guidelines that Fannie Mae and Freddie Mac – two agencies responsible for standardizing mortgage lending – have set. But it is lenders, such as banks, that are responsible for approving their Conventional loan.
Designed for lower-income families
Limited to owner-occupied, 1-unit primary residence financed through Fannie Mae or Freddie Mac
FICO 620 (guidelines can change)
High Balance Loan amounts up to $1,073,000 in high-cost areas for a single unit
Eligible for primary and secondary homes
More competitive rates and easier guidelines
Faster turn times
Loan amounts up to $715,000
A conventional loan can be used to finance a property in a high-cost area
15-, 20-, 25- & 30-year fixed rate
Down payments as low as 3% depending on loan amount
Among the documents borrowers may need for a Conventional loan are:
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I represent clients who authorize me to do so. I do not work for or represent the interest of any mortgage lender or other duly authorized entity to whom I may submit a mortgage application on behalf of a Client. My services are provided in a Mortgage Broker capacity and I am not authorized to approve or deny a mortgage loan request. NMLS 1691763 / NMLS 1322774