Conventional loans are mortgages that are usually fixed rate and fixed term, and that are neither guaranteed nor insured by the Federal Housing Administration (FHA), the Department of Veterans Affairs (VA) or any other government agency. Conventional loans can also be adjustable-rate mortgages, or ARMs, which are mortgage loans with an interest rate that can change periodically.
Around half of all conventional loans are defined as “conforming”, which means they meet the guidelines of Freddie Mac and Fannie Mae, the government sponsored companies responsible for making mortgages more accessible to the public.
The remaining types of conventional loans do not conform to these guidelines; they range from “jumbo” mortgages that exceed government-set loan limits, to “portfolio” mortgages that are based on the unique guidelines of whatever lender provide them.
Legacy Park Mortgage will help you navigate through the various conforming and non-conforming conventional mortgage loan programs that are available to find the one that best suits you.