Conventional Mortgage

Conventional Mortgage

  • A conventional mortgage is a mortgage that is not insured by any government program.
  • Typically, conventional mortgages are limited to a maximum amount of $417,000, with stringent guidelines on income, debt, credit scores and debt-versus-income.
  • Conventional mortgages above 80% loan-to-value normally are required to carry Private Mortgage Insurance (PMI). PMI is issued through private entities and have stringent guidelines similar to conventional mortgages.
  • Fannie Mae and Freddie Mac sponsor conventional programs.
  • Conventional Mortgages are offered with a fixed rate or an adjustable rate (ARM), depending on customer wants and needs.