Conventional Loans

Conventional Loans


Conventional loans are actually any type of creditor agreement that are not guaranteed by the Veterans Administration (VA), or insured by the Federal Housing Administration (FHA). In general, all conventional loans are eligible for sale to the government sponsored entities such as Fannie Mae (FNMA) and Freddie Mac (FHLMC) or to private secondary market investors.


There are two different types of Conventional loans; Conforming and Non-Conforming loans. Conforming loans have to meet the guidelines set by Fannie Mae and Freddie Mac. Any loan which does not meet guidelines is a non-conforming loan.




    • Lower Fees: Fees associated with Conventional loans frequently are lower than other loan products because the lender sets these rates.
    • Interest Rates: Lenders determine the rates to offer borrowers based on their credit scores. A person with a solid credit score is often able to secure a lower rate.