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.
A conventional mortgage is a type of home loan that is not guaranteed or insured by a government agency, such as the Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA).
Conventional mortgages are typically offered by private lenders, such as banks, credit unions, and mortgage companies. They usually require a down payment of at least 5% of the home's purchase price, although a larger down payment may be required for borrowers with lower credit scores or higher debt-to-income ratios.
Conventional mortgages come in two types: conforming and non-conforming. Conforming loans conform to guidelines set by Fannie Mae and Freddie Mac, two government-sponsored entities that purchase mortgages from lenders. Non-conforming loans do not meet these guidelines and may be harder to qualify for and may have higher interest rates.
The terms and requirements of conventional mortgages can vary depending on the lender, but they generally have fixed or adjustable interest rates, and the loan term can range from 10 to 30 years.
I will get back to you shortly
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