What is a Conventional Home Loan?

What is a Conventional Home Loan?

A conventional home loan is a mortgage that is not guaranteed by the U.S. Government.

A conventional home loan usually follows the guidelines of Fannie Mae and Freddie Mac.

Conventional mortgage loans may be conforming or non-conforming.

Non-conforming loans don’t meet the guidelines of Fannie Mae or Freddie Mac but are still considered conventional mortgages.

Conventional mortgage loans can be fixed or adjustable.

With conventional home loans you can have a fixed rate mortgage or an adjustable rate mortgage (ARM).

With a fixed rate mortgage, your interest rate stays the same during the entire loan period.

Whereas with an ARM, interest rates may change during the life of the loan.

If you are in the process of buying a home, a second home, or investment property and you have a good credit score, and enough money for a down payment here is where you can apply for a conventional home loan Tampa.