What is a Conventional Loan?
A conventional loan is not backed by any federal program or entity. They have standards set by Fannie Mae and Freddie Mac. These two entities have special rules that have been set forth regarding the sale of these loans. Conventional home loans include; non-conforming loans, jumbo loans, portfolio loans and sub-prime loans. The terms and rate are usually fixed. Most of these loans require a larger down payment and higher credit scores. Any time you have a basic question such as what is a conventional loan, the Z Mortgage Team is here to help. For more information click this link, comforming limits by county for the state of Utah.
