A conventional mortgage refers to any loan that is not insured or guaranteed by the federal government. This is different from a conforming mortgage, which adheres to the guidelines set by Fannie Mae and Freddie Mac.
Conventional mortgage loans can be fixed mortgages or adjustable-rate mortgages, including hybrid ARMs. Conventional mortgages typically have a slightly higher down payment than government loans. However, conventional mortgages normally provide more flexibility and lower interest rates for buyers with good credit and the ability to afford a slightly higher down payment.
At Dream Home Lending, we would love to talk with you to see if you qualify for this type of loan for your home purchase. Call us today to set up an appointment.
