Conventional Mortgage

What Are Conventional Loans

Conventional "Portfolio" Loans These are a subset of conventional loans that are held directly by mortgage lenders. They’re not sold to investors as other conventional loans are. lenders can, therefore, set their own guidelines for these mortgages and this can sometimes make it a little easier for borrowers to qualify.

What are the requirements of conventional mortgage loans? The requirements to qualify for this type of loan vary by lender, but generally depend on a buyer’s monthly income and credit history.

A conventional mortgage is a type of home loan that is not offered or secured by a government entity, such as the FHA – and tend to have lower interest rates.

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The information provided by this Conventional mortgage calculator is for illustrative purposes only. The default values are hypothetical and may not be applicable to your individual situation. Speak with a licensed loan officer to review rate and terms that may be available for you.

Conventional loans have traditionally been intended for borrowers with excellent FICO scores, and who plan to put a little more money down. Unlike FHA, VA and USDA loans, they are not backed by the federal government.

According to USDA data, the department guaranteed or made about 10,000 single-family loans each month in the most recent fiscal year that ended in September. Most mortgages are considered conventional.

A subprime mortgage is a type of home loan issued to borrowers with low credit scores (often below 600) who wouldn’t qualify for conventional mortgages. They usually come with much higher interest.

Compare Va Loan To Conventional Loan

A conventional loan is a type of mortgage that is not part of a specific government program, such as federal housing administration (FHA), Department of Agriculture (USDA) or the Department of Veterans’ Affairs (VA) loan programs. However, conventional loans are commonly interchangeable with “conforming loans”, since they are required to conform to Fannie Mae and Freddie Mac’s.

Conventional mortgages are home loans that are not guaranteed or insured by the federal government. These loans may follow the guidelines of the government sponsored enterprises (GSE) such as Fannie Mae or Freddie Mac, in which cases they would be considered "conforming" loans.

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