Conventional/Conforming

A conforming loan is a mortgage that complies with the standard Fannie Mae and Freddie Mac guidelines.  Fannie Mae worked with Freddie Mac to develop uniform mortgage documents meeting national standards for what would come to be known as a conforming loan.  Conforming loans typically require enhanced borrower standards, which includes, higher credit scores, larger down payments, and stricter underwriting guidelines.  In purchase or refinance transactions, conforming loans will generally require private mortgage insurance (PMI); unless the borrower has a 20% equity.

• Terms Available: 30-year, 25-year, 20-year, 15-year, 10-year

• Adjustable rate mortgages allowed

• Single family and 2-4 units allowed

• Second homes and investment properties allowed

• Minimum down payment: 3-5% (determined by property type or occupancy)

• Grants and gifts allowed from acceptable sources, along with 5% of your own funds

• Stricter credit requirements

• 4 years post bankruptcy

• 4 years post foreclosure

• Seller concessions allowed, based upon the down payment

• Renovation loans are available

• Maximum loan amount $417,000

• Purchase or refinance