Conventional Home Loans

Conventional Home Loans

What is a Conventional Home Loan?

Loans secured by government sponsored entities (GSE’s) such as Fannie Mae and Freddie Mac are conventional loans.

Conventional loans can be made to purchase or refinance homes with first and second mortgages on single family to four family homes.

In general, Fannie Mae and Freddie Mac’s single family, first mortgage loan limit is $453,100 in 2018. High balance loan limit is $679,650 in 2018. This limit is reviewed annually and, if needed, changed to reflect changes in the national average price for single family homes. The current loan limit applies to all conventional mortgages delivered after January 1, 2018.

Loans which are larger than the limits set by Fannie Mae and Freddie Mac are called jumbo loans. Because jumbo loans are not funded by these government sponsored entities, they usually carry a higher interest rate and some additional underwriting requirements.

In addition to common loan structures such as fixed rate, adjustable rate and balloon loans, Fannie Mae and Freddie Mac also have loan programs for low to no down payments, community lending and affordable housing initiatives, construction to permanent, home improvement and reverse mortgages.

Bankers Group conventional loan programs include: second mortgages, adjustable rate loans and 15 and 30-year fixed and 40-year amortization loans.

We work in Los Angeles county real estate. For a quote or loan application package call us at 818-226-6100.

Conventional Loans