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Conventional Loans
Conventional loans are designed to serve the needs of both first time homebuyers and those who already own homes. Conventional programs are not backed by government agencies, such as, Federal Housing Administration, Veteran's Administration and Rural Development. Borrowers interested in conventional programs would be seeking to reduce closing costs by eliminating guarantee fees that may be associated with government-backed programs.
Conventional Loan Programs include:
- Conforming conventional loans are for borrowers who meet the guidelines, loan limits and parameters set by Federal Home Loan Mortgage Corporation (Freddie Mac) and Federal National Mortgage Association (Fannie Mae). There is no maximum income limit. Conventional loans are typically not assumable.
- Non-conforming conventional loans do not meet credit, collateral or other underwriting guidelines of Freddie Mac or Fannie Mae. Borrowers with special circumstances may wish to be qualified using stated income, no income guidelines, no asset verification or other alternative approval methods. Terms and conditions vary among institutions based on collateral, loan to value ratios, credit and payback terms.
- Jumbo loans are for borrowers financing homes that exceed the upper loan limits set by Fannie Mae and Freddie Mac. Jumbo loan financing opens the possibility of obtaining long term fixed rates on home loans up to $1,000,000.
Financing Options
- Fixed rates
- Variable rates
- Terms up to 30 years
- Balloon payment loans
- Primary residence or investment property
- Purchase or refinance
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