A conventional mortgage loan is a conforming mortgage that is eligible for purchase by Fannie Mae (FNMA) or Freddie Mac (FHLMC). Fannie Mae and Freddie Mac are Government Sponsored Enterprises (GSEs), whose sole purpose is to provide affordable lending and liquidity to the mortgage market. Conventional Mortgages are not insured or guaranteed by the federal government.
GSEs only buy loans such as fixed-rate and ARM mortgages that “conform” to their established loan guidelines. In general, the credit, income, down payment and loan amounts of these conforming loans comply with certain pre-determined standards.
Loans must meet current conforming loan limits
Borrowers must meet minimum credit score requirements
Borrowers must meet debt and income guidelines
Mortgage Insurance (MI) is typically required on any loan with a loan to value greater than 80%
We can't emphasize enough how important it is to work with a knowledgeable Mortgage Professional. Every homebuyer needs an industry pro that understands the many loan programs available, and is able to determine which loan is appropriate for a particular borrower.
We realize there are many different types of borrowers who seek affordable home financing, and we understand that our job is to locate affordable financing that works for you.