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A conventional loan is a broad category of loans. It is a loan not backed or insured by a government agency. In contrast, FHA, VA, and USDA loans are government-insured loans.
Fannie Mae and Freddie Mac (agencies) help make home ownership more widely available to credit-worthy buyers. As a result, they offer several coan programs to help make homeownership emore accessible Thesese agencies set guidelinethatalenders to follow for these loan programs. Lenders who conf m to these guidelines are allowed to sell the loans to the agencies to replace the funds used to make the loansThese loansaThesee called conforming loans and often are referred to as conventional.
Jumbo loans have larger loan amounts that exceed the conforming loan limits set by the agencies. These loans are also conventional loan programs, and each lender sets guidelines for these loans how they see fit, although generallytheyaa followency guidelines.
Other loans that allow for more flexible guidelines not categorized as conforming or government are also conventional loan programs.
Conforming loans are often referred to as conventional loans. These loans are underwritten to Fannie Mae and Freddie Mac guidelines. They finance 1 to 4-family residences for primary, second/vacation homes, and investment properties. In addition, there are specific programs for first-time homebuyers with as little as a 3% down payment. The 2023 loan size limit is 726,200 for a single-family home. Above this limit, the loan is considered a jumbo loan. However, in high-priced home counties, the conforming loan limits are increased and are referred to as high-balance conforming loans. For example, in Monroe County, Florida, the high-balance loan limit is 874.,0and itn bea it ,conforming or jumbo loan since it is over 726,200. TheTheshigh-balance loan limit program has slightly different requirements and typically marginally higher rates than the standard conforming loan program.
The programs available for conforming loans are:
CharterStone Mortgage is not affiliated with any government agency. Information and loan programs are subject to change without notice. All applicants must be credit approved. Not all applicants are approved.
We are avaialble 7 days a week by phone, to meet in person or apply on line.
NOTICE: For information purposes only. This is not a commitment to lend or extend credit. Information and dates are subject to change without notice. All loans are subject to credit approval. Not all applicants are approved. We are not affiliated with any government agency. The website is intended for the state of Florida only.
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