Conventional Loans

Conventional home loans include:

• Conforming loans
• Non-conforming loans
• Jumbo loans
• Alternative Doc Loans

Conforming loans have maximum loan amounts that are set by the government. Other rules for conforming loans are set by Fannie Mae or Freddie Mac. These two government-sponsored enterprises (GSEs) buy mortgages from lenders and sell them to investors.

Non-conforming loans are less standardized. Eligibility, pricing, and features can vary widely by lender, so it's very important to get the home work done and compare several offers before any commitment.

Non-conforming loans that are larger than loan limits set by the GSEs are often referred to as "jumbo" mortgages. For example, if you are buying a home in a county in which the conforming loan limit is $726,200, and you are taking out a single mortgage for $900,000, you'll require a jumbo loan.

Conventional home loans that carry an interest rate and fee higher than the rates of prime mortgages are called "alternative doc" mortgage loans.  They are granted to borrowers that for some reason, are unable to document their income using standardized documentation set by Fannie Mae or Freddie Mac (GSE's).

Call our loan advisor at 610-770-6900 or click the button below to request a free consultation with one of our mortgage advisors.

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