Conventional mortgage Loans are not insured or backed by a government agency such as the FHA or the VA.
What Is A Conventional Mortgage?
Before applying for a home loan, it is important to determine the best financial option for you. Conventional mortgages are loans that aren’t guaranteed or insured by the federal government. You may also refer to this type of loan as a non-GSE (non-government sponsored entity) loan. Also known as a conforming mortgage, the conventional loan complies with the parameters set by Freddie Mac and Fannie Mae. You may obtain either an adjustable or fixed rate while your maximum loan amount is determined by the county and state of the home.
Conventional loans can benefit an individual whether they are a first-time buyer or in the process of refinancing. Just like most home loans, this option is going to require proof of income and credit stability. A credit score of 620 or better is standard across this borrowing platform.