Conventional Loans

A Conventional or Conforming Loan is a loan program overseen by Fannie Mae or Freddie Mac. Fannie and Freddie have more restrictions than FHA or VA. Buyers can use a conforming loan to purchase home using fixed rate mortgages or ARM’s.

Conforming loan programs have many advantages and disadvantages:

Higher down payments (normally 5% of your purchase price)
Allows sellers to pay up to 3% of the borrowers closing costs
Strict credit requirements
Lower interest rates than FHA and VA Loans

Despite the many perks of a Conforming loan, there may be guidelines or stipulations that would not fit your needs or you may not qualify for. Learn More.