Conventional Mortgage
Conventional Mortgage
"Conventional mortgage" or "conventional loan" is a term you'll always encounter when shopping for a mortgage. After all, this common mortgage type is provided by most lenders.
What Is a Conventional Mortgage or Loan?
A conventional mortgage or conventional loan is any home buyer's loan that is not provided or secured by a government entity. Rather, conventional mortgages are available through private lenders, such as banks, credit unions, and mortgage companies.
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What kinds of Conventional Loans are available?
Conforming loans observe the guidelines set by Fannie Mae and Freddie Mac, two government-sponsored establishments that fund the U.S. housing market. The best-known regulation has to do with the size of the loan. In 2022, the conforming loan limitation for single-family homes in most continental U.S. is $647,200. Higher-cost areas, such as Hawaii and Alaska, have greater limits, up to $970,800 for single-family homes.
Many nonconforming loans are jumbo loans for home buyers who need to borrow an amount higher than the conforming limit for the area.
Other nonconforming loans include those made to borrowers with poor credit, high debt or a recent bankruptcy, or homes with a high loan-to-value ratio (usually up to 90% for a conforming loan).
Can I get down payment assistance with a Conventional Loan?
Yes, you may be able to qualify for down payment assistance with a conventional home loan. In addition, government agencies and community programs offer services to buyers struggling with complex financial situations, no matter what type of financing they use.
Mortgage Unity LLC
We bring a customized, unique approach to mortgages. Our lending solutions use the perfect hybrid of human-driven insights and technical prowess to process loans faster and significantly reduce costs.
PHONE
(978) 590-8200
ADDRESS
67 Forest St. Suite 272
Marlborough, MA 01752
Mortgage Unity LLC supports Equal Housing Opportunity. Company NMLS ID# 1843595 (www.nmlsconsumeraccess.org)| 508-974-8186. Mortgage Unity LLC is licensed by MA, NH, ME Broker License # MB1843595, Interest rates and products are subject to change without notice and may or may not be available at the time of loan commitment or lock-in. Borrowers must qualify at closing for all benefits. Mortgage Unity LLC is a Massachusetts limited liability company. 67 Forest St #272, Marlborough MA 01752.
