What is a Conventional Loan?
Conventional loans are mortgage loans offered by non-government sponsored lenders. A conventional, or conforming mortgages adhere to the guidelines set-forth by Fannie Mae and Freddie Mac. It may have either a fixed or adjustable rate. While many think that a 20% down payment is required for all conventional loans, many lenders now offer low down payment options. C2 Financial Corporation offers conventional mortgages in California, Colorado, Florida, Hawaii, Texas and Washington.
What is the Difference between Conforming & Non-Conforming Loans?
Conventional loans are split into two types: Conforming and Non-Conforming.
Conforming loans are mortgages which meet the requirements to be sold to Fannie Mae, Freddie Mac, the Federal Housing Administration (FHA), USDA or Dept. of Veterans Affairs (VA).
Non-Conforming loans, are just just the opposite. These mortgages are not bought by Fannie Mae, Freddie Mac, FHA, USDA, or VA.
What are the Benefits of Conventional Loans?
Conventional loans are intended for borrowers with better income and credit scores, and have good rates and flexibility.
Are there Loan Limits on Conventional Loans?
Different counties have different limits on how much you can borrow for a Conventional Loan.