A Conventional Home Loan is a mortgage that is not insured by a government agency such as the Federal Housing Administration (FHA), Department of Veterans Affairs (VA) or the Department of Agriculture (USDA). 

“Conventional” just means that the loan is not part of a specific government program. Conventional Home Loans typically cost less than FHA Home Loans but can be more difficult to get.

Two types of Conventional Home Loans 

Conforming - Conforming loans have maximum loan amounts that are set by the government. Other rules for conforming loans are set by Fannie Mae or Freddie Mac, government backed agencies that provide backing for conforming loans.

Conforming loans are the most common loan type. Loan amounts must be $424,100 or less, unless you're buying a home with multiple units. If your down payment is less than 20%, you'll typically need mortgage insurance. It helps you get a loan you wouldn't otherwise be able to, requiring a monthly mortgage insurance premium.

Non-conforming - Non-conforming loans are less standardized.  These loans usually require good credit and a high down payment to qualify.

Non-conforming loans include niche loans for borrowers with unusual circumstances. Loans for properties with non-standard features - such as more than 10 acres of land, properties with agricultural income, or properties that are difficult to appraise - are non-conforming.

Other non-conforming loans include those for affluent customers with tricky finances, such as self-employed borrowers or newly graduated doctors.

Call us at  972-675-7713  and we can discuss your best mortgage options today!