Any loan or mortgage that is not backed or offered by a government entity is considered a conventional loan. Conventional loans are offered by institutions such as banks, mortgage companies, and credit unions. Although conventional loans are not backed by government agencies, there are a couple of exceptions. The Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), are a couple of government-backed entities that can guarantee conventional loans in some instances.
Conventional Loans includes Fixed Rate, Adjustable Rate, and Hybrid Loans. Features include;
- Low down payment options
- Flexible qualifying credit scores
- Predictable monthly payments
- Protection against high-interest rates
- Jumbo financing available
- Renovation loans available
Comments(1)