Conventional Loans

Conventional Loans

A “conventional loan” is one that is not part of a government program. Conventional loans have tighter lending requirements compared to their government counterparts but can be the cheapest product.

There are two types of conventional loans:

Conforming VS. Non – Conforming

Conforming

  • Conforming loans have a minimum of 5% down and a maximum loan amount that is set by the government at the end of November every year. For 2022, the county loan limit is $647,250. 

Non - Conforming

  • Non-Conforming loans are not owned by Fannie Mae or Freddie Mac and therefore have less structure to them. The guidelines are specific to the investor underwriting the file and rates could vary wildly.