Conventional loans are not backed by government entities, such as the Federal Housing Administration or the Veteran Administration. These loans can either be conforming or non-conforming and are not required to meet the standards and guidelines set by Fannie Mae and Freddie Mac. Fannie Mae and Freddie Mac are the two largest buyers of mortgage loans in the US. These mortgage companies purchase loans that have been and are funded by the government, but are not government agencies themselves. These loans are versatile and can be used to finance the purchase of properties such as condos, single family homes, and multi-unit homes.
CONVENTIONAL LOAN TIPS
It is always a good idea to conduct your own research thoroughly before taking out a loan. Ask yourself if you are financially stable enough to take on monthly mortgage payments. Be sure that you take time to speak with a mortgage broker about the perfect loan that will fit all of your needs. One of the most common, and frustrating, mistakes people make when applying for a conventional loan is not checking their credit score before inquiring and underestimating the expenses of home ownership.
Contact GEM Mortgage today for more information or to ask us questions about our conventional loan program!