This Article Covers What Are Conventional Loans Versus Government-Backed Mortgages: Conventional loans are the most popular loan program in the United States. Owner-occupant primary homes, second homes, and investment properties are eligible for conventional loan financing. Owner-occupant primary one to four-unit homes is eligible for government-backed loans. You cannot finance second homes or two to […]
Conforming mortgage guidelines govern most loans in the United States.
Conforming loans are bought from lenders and sold to investors.
They must meet guidelines established by Fannie Mae or Freddie Mac.
Conforming loans are Qualified Mortgages (QMs), which means the government considers them among the safest for borrowers.
Mortgage borrowers with less than a 97% loan to value and higher credit scores can qualify for a conforming loan without paying annual mortgage insurance. Instead, the lender can cover the mortgage insurance for the borrower. In exchange, the borrower pays a slightly higher mortgage rate.
There are different waiting period requirements in qualifying for conventional loans after a deed in lieu of foreclosure versus a standard foreclosure
Homeowners should explore how much money they can save with today’s historic low mortgage rates to refinance their home loans.
Conventional loans require waiting periods after bankruptcy. They are usually longer than FHA waiting periods, but not always. Here’s how to determine your waiting period and which mortgage program is best for you.
Homeowners With FHA Loans Should Consider A Conventional Refinance Loan While Mortgage Rates Are At Historic Lows And Avoid Paying FHA MIP. Mortgage rates are at historic lows and many home values have skyrocketed in the past several years. Many homeowners with FHA loans can benefit by refinancing to a conventional mortgage and avoid paying LPMI.
This article covers Conventional Mortgage Guidelines And Requirements For Borrowers A conventional loan is a residential home loan that conforms to Fannie Mae and Freddie Mac mortgage lending standards and guidelines. Lenders need to meet Conventional Mortgage Guidelines in order for them to sell loans they originate and fund on the secondary market to Fannie […]
This article covers HomeReady Versus Home Possible Mortgage Guidelines Many home buyers often contact us at Gustan Cho Associates and want to know the difference between HomeReady Versus Home Possible. HomeReady conventional loans are offered by Fannie Mae Home Possible conventional loans are offered by Freddie Mac There is no major difference between Fannie Mae’s HomeReady […]
This article covers Conforming Mortgage Guidelines Versus Government Loans FHA loans, VA loans, USDA loans are often called government loans. This is because lenders who originate these types of home loans are guaranteed by the government. FHA loans are insured by the Federal Housing Administration, a subsidiary of the United States Department of Housing and […]