MORTGAGE.INFO LENDER HOTLINE: 888-581-5008 What is a conventional loan? A conventional loan is a loan that is not backed by the federal housing administration (FHA) and the Department of Veteran Affairs (VA). Conventional loans are are also known as Conforming loans because they conform to the guidelines established by Fannie Mae and Freddie Mac. FNMA FRMC are government sponsored enterprises to make mortgages more available and affordable. Mortgages that fall under the conventional loan title include: Conforming loans Non-conforming loans Jumbo loans Portfolio Loans Subprime Loans Lenders set their own guidelines and regulations on conventional loans so there is a greatly variant scale of qualification and rates. However these loans are usually a good option for borrowers that may have low credit scores or need special accommodation on their loan. In some cases a conventional loan can offer more options for the borrower. This can be with the loan term, or the amount of money you need to borrow. Conventional loans also do not require mortgage insurance and conventional loans require a much lower down payment percentage. These loans are much more flexible by location as well. With some FHA loans there is a list of county or regions where the loan applies. A conventional loan will give you the flexibility to from a wider lender list, and anywhere in the country. Conventional Loan Pros and Cons Pros: No mortgage insurance required if LTV is 80% or lower Can be used on properties of all types Can cancel existing mortgage insurance More loan program options Can hold more than one conventional loan More lenders and locations to choose from No max limit on the loan Cons: Higher down payment Higher rates Sometime more difficult to qualify for Possible prepayment penalty

1. Conventional
MORTGAGE.INFO
Loans
MORTGAGE.INFO
LENDER HOTLINE: 888-581-5008

2. What is a conventional loan?
A conventional loan is a loan that is not backed by the
federal housing administration (FHA) and the
Department of Veteran Affairs (VA). Conventional loans
are are also known as Conforming loans because they
conform to the guidelines established by Fannie Mae
and Freddie Mac. FNMA FRMC are government
sponsored enterprises to make mortgages more
available and affordable.
MORTGAGE.INFO
LENDER HOTLINE: 888-581-5008

3. Mortgages that fall under the
conventional loan title include:
Conforming loans
Non-conforming loans
Jumbo loans
Portfolio Loans
Subprime Loans
MORTGAGE.INFO
LENDER HOTLINE: 888-581-5008

4. Lenders set their own guidelines and regulations on
conventional loans so there is a greatly variant scale of
qualification and rates. However these loans are usually a
good option for borrowers that may have low credit scores
or need special accommodation on their loan. In some
cases a conventional loan can offer more options for the
borrower. This can be with the loan term, or the amount of
money you need to borrow. Conventional loans also do not
require mortgage insurance and conventional loans require
a much lower down payment percentage. These loans are
much more flexible by location as well. With some FHA
loans there is a list of county or regions where the loan
applies. A conventional loan will give you the flexibility to
from a wider lender list, and anywhere in the country.
MORTGAGE.INFO
LENDER HOTLINE: 888-581-5008

5. Conventional Loan Pros and Cons:
Pros:
No mortgage insurance required if LTV is 80% or lower
Can be used on properties of all types
Can cancel existing mortgage insurance
More loan program options
Can hold more than one conventional loan
More lenders and locations to choose from
No max limit on the loan
Cons:
Higher down payment
HIgher rates
Sometime more difficult to qualify for
Possible prepayment penalty
MORTGAGE.INFO
LENDER HOTLINE: 888-581-5008

6. T O L E A R N M O R E
MORTGAGE.INFO
LENDER HOTLINE: 888-581-5008
C L IC K HE R E
MORTGAGE.INFO
LENDER HOTLINE: 888-581-5008

7. Justin McHood is Americas Mortgage
Commentator and has been providing
Mortgage commentary for over 10 years.
INFORMATION PROVIDED BY:
Justin McHood
MORTGAGE.INFO
MORTGAGE.INFO
LENDER HOTLINE: 888-581-5008

8. LEARN MORE ABOUT MORTGAGE.INFO
MORTGAGE.INFO
_MORTGAGEINFO
FACEBOOK.COM/WWW.MORTGAGE.INFO
LENDER HOTLINE: 888-581-5008
PINTEREST.COM/MORTGAGE_INFO
MORTGAGE.INFO
LENDER HOTLINE: 888-581-5008