Conventional Mortgage Loans
A conventional mortgage loan is a type of mortgage in which the underlying terms and conditions meet the funding criteria of Fannie Mae and Freddie Mac. About 35-50% of mortgages, depending on market conditions and consumer trends, are conventional mortgages. In other words, Fannie Mae and Freddie Mac purchase 35-50% of all mortgages. Conventional mortgages may be fixed-rate or adjustable-rate mortgages. Conventional mortgage loans are typically only an advantage to borrowers with outstanding credit scores and low debt-to-income ratios.
Conventional Mortgage Loan Features & Benefits
· Maximum loan amounts apply
· 3%-5% minimum down payment
· Private Mortgage Insurance is required on LTVs over 80%
· Mortgage Insurance options include monthly, upfront, split, financed, and lender paid mortgage insurance