Conventional Home Loans

Conventional Home Loans

 

What are a Conventional Home Loans?

 

Loans secured by government sponsored entities, GSEs, such as Fannie Mae, FNMA, and Freddie Mac, FHLMC, are conventional home loans.

This type of home loan can be made to purchase or refinance homes with a first mortgage or second mortgage on single family to four family homes.

In general, the Fannie Mae and Freddie Mac single family, first mortgage loan limit is $484,350, an increase from $453,100 in 2018. The new ceiling loan limit for one-unit properties in most high-cost areas will be $726,525 — or 150 percent of $484,350. 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, 2019.

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 home 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, please contact Dorothy Reik at 818-226-6100 or dorothy@bankersgroup.us

 

 

Fannie Mae FNMA:

 

Fannie Mae FNMA: Fannie Mae was first chartered by the U.S. government in 1938 to help ensure a reliable and affordable supply of mortgage funds throughout the country. Today it is a shareholder-owned company that operates under a congressional charter.

 

Freddie Mac FHLMC:

 

Freddie Mac FHLMC: Freddie Mac was chartered by Congress in 1970 as a private company to likewise help ensure a reliable and affordable supply of mortgage funds throughout the country. Today it is a shareholder-owned company that operates under a congressional charter.