Conventional Mortgage2018-07-25T13:49:07-06:00

Conventional Mortgage

What are Conventional Mortgages?
A conventional loan generally refers to a mortgage loan that follows the guidelines of government sponsored enterprises (GSE’s) like Fannie Mae or Freddie Mac.  Most mortgages are conventional mortgages. Conventional mortgages can be fixed-rate or adjustable rate mortgages and typically have terms of 15 or 30 years.  Conventional mortgages can be conforming or non-conforming. Conventional mortgage loans are ideal for borrowers with excellent credit who can afford a down payment of 5% or more.

What is the difference between Fixed Rate and Adjustable Rate Mortgages?

Adjustable-rate mortgages, or ARMs, fluctuate in relation to the rate of a standard financial index, such as the LIBOR. Monthly payments can go up or down accordingly. Fixed-rate mortgages interest rate remains the same through the term of the loan; therefore payments are the same each month.

What are Conforming and Non-Conforming Loans?

Conforming loans follow the terms and conditions set by Fannie Mae and Freddie Mac. The Office of Federal Housing Enterprise Oversight (OFHEO) sets the criteria on what constitutes a conforming loan limit that Fannie Mae and Freddie Mac can buy.  Currently, the conforming limit set by OFHEO is $417,000 for most areas of the United States.  Loans in excess of $417,000 are considered Jumbo Mortgage Loans.


We make the home loan process as simple as possible by guiding you through every step.

Fairway Now App
Fairway Now App

Our mobile app makes applying easy and scanning documents as simple as snapping a picture.

Watch Our Video
Download the App