Conventional Mortgage Types
There are scores of mortgage loans, but they generally fall into broad categories: Loans that are insured or guaranteed by the government, such as FHA, VA and USDA loans, and loans not insured or guaranteed by the government, which are called conventional loans.. Although conventional loans are not insured or guaranteed by the government, they follow guidelines set by Fannie Mae and Freddie.
IS A CONVENTIONAL LOAN BEST FOR YOU? conventional mortgage loans may offer lower interest rates than other types of home loans. To qualify, they require good credit scores and loan-to-value ratios, and larger down payments than government-backed loans like FHA and VA – typically 20% of the purchase price.
A conventional mortgage is a loan that is not guaranteed or insured by any government agency. It is typically fixed in its terms and rate. Government agencies such as the Federal housing administration (fha), the Farmers Home Administration (FmHA) and the Department of Veterans Affairs (VA) can insure or guarantee loans.
HARP: Conventional Mortgage Streamline Loans. If your home was purchased before June 01, 2009 and the mortgage note is held at Fannie Mae or Freddie Mac you most likely are eligible for a HARP refinance and need to speak with a mortgage lender. Fannie Mae’s program, DU Refi Plus, is the most common however Freddie Mac’s program, Refi Relief.
When you apply for a home loan, you have the option of choosing between a government-backed mortgage. like an FHA loan, or a conventional mortgage. Rather than being insured by the federal government, conventional mortgages are insured by a private company.
How Private mortgage insurance works private mortgage insurance is a type of insurance mortgage lenders require on conventional loans when the borrower’s down payment isn’t large enough, usually 20.
CONVENTIONAL LOAN. A conventional loan isn’t insured by the federal government. They typically require a minimum of 5% down and have both fixed or adjustable rate options. Popular conventional loan terms are 15 and 30-year. The maximum loan amount for conventional loans ranges between $453,100 and $679,650 depending on the county where the.
5. Adjustable-rate mortgages; 1. Conventional mortgages. A conventional mortgage is a home loan that’s not insured by the federal government. There are two types of conventional loans.