Conventional loans have been considered the garden variety mortgage program for over 80 years. The term ‘conventional loan’ is defined as any mortgage that isn’t guaranteed or insured by a government agency. Today’s conventional loans may be either “conforming” or “non-conforming”, although ‘conforming loan’ programs are often loosely referred to as ‘conventional loans’. Conventional conforming loans are conventional programs that meet or ‘conform’ to guidelines set forth by the Federal Housing Finance Agency (FHFA), as well as the funding criteria for either Fannie Mae and Freddie Mac.
What is a Conventional Loan?
By definition, a conventional loan is any mortgage that’s not guaranteed or insured by the federal government. Conventional loans can be either “conforming” or “non-conforming”, although conventional loan requirements generally refer to the set of mortgage guidelines that ‘conform’ to the government sponsored enterprises (GSE’s) like Fannie Mae or Freddie Mac. Hence, when you hear someone talking about ‘conventional loans’, ‘conforming loans’ or ‘conventional conforming loans’, they’re likely referring to the same thing. Read More
Once you’ve contacted your lender to apply for a mortgage, they will request certain documentation from you to verify to insure you meet the loan requirements for the program. Documentation that’s commonly required includes the following: Read More
Even though we’re well into a new year, it’s not too late to think about your situation and set new financial goals for the coming year. If you own a home, there are quite a few things you might consider doing to improve your situation. Read More
If you have a house, chances are that you’ve been told it’s your most valuable asset. And it’s true that your home can have a lot of value. Read More
It’s not easy to walk away from your home, admitting that you need to accept a foreclosure in order to move on and start over. Read More
Recently, my family moved across the country. We moved from a house to an apartment. Our home was rather modest to begin with, so the move to the apartment represents downsizing by about 250 square feet. Read More
While there are many recent studies that now indicate it’s much more affordable to buy a home than rent a home, there’s a few ongoing factors that keep a large percentage of American locked out Read More
The goal of being debt free is one that holds the promise of financial freedom for many consumers. For many, this also includes getting rid of mortgage debt as early as possible. But does it always make sense to pay off your mortgage early? Read More
Even though the real estate market seems to be picking up, there are some good deals to be had. Indeed, there are still some distressed properties on the market, and that can allow you to pick up a home for much less. Read More