CONVENTIONAL LOANS
What is a Conventional Loan?
A Conventional Loan is a type of mortgage not backed by the federal government, unlike FHA, VA or USDA loans. It follows the guidelines set by Fannie Mae and Freddie Mac. These loans can be conforming or non-conforming, with conforming loans adhering to loan limits. For a single-family home, the typical loan limit is $647,200, though it can be higher in certain counties. For multi-family properties, the limits are higher, but the loan is still considered conventional if it meets other criteria.
Conventional loans are popular for first-time homebuyers, self-employed individuals, and real estate investors. They offer competitive interest rates and flexible terms, including options for renovation loans, construction loans, or fix-n-flip projects. Whether you’re looking to refinance, purchase a vacation home, or invest in real estate, a conventional loan may be the best option. Consult a mortgage broker or lender to explore financing options.