Conventional loans are designed to serve the needs of both homebuyers and those who would like to refinance or remodel their existing home. 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 provide opportunities for financing where income, credit, collateral or other underwriting guidelines expand beyond the parameters of Freddie Mac or Fannie Mae.
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 for loan amounts that exceed the conforming Fannie Mae or Freddie Mac limits
Terms up to 30 years
Balloon payment loans
Primary residence or investment property
Purchase or refinance
Government Loans are guaranteed by a federal or state agency, such as Federal Housing Administration (FHA), Veteran's Administration (VA) and Rural Development (RD). Government loans are designed to enhance homeownership affordability by allowing minimal down payments and less stringent approval guidelines
Government Loan Programs Include:
Federal Housing Administration loans are available to all borrowers who qualify based on guidelines, loan limits and parameters set by FHA. There is no maximum income limit set by FHA. FHA loans are assumable by prospective buyers whose credit is approved based on the same guidelines as the original borrower.
VA loans are available to veterans who served in active duty and received a Certificate of Eligibility from the military service. Veteran's Administration sets the guidelines, loan limits and parameters for qualification purposes. VA loans are assumable based on VA requirements.
RD loans guaranteed by Rural Development provide attractive financing for low to moderate income borrowers based on income limits set for each county. RD loans are assumable for borrower's who meet the income limits and other parameters of the RD program.