What is a Conventional Loan? Conventional loan is one of the most common types of loans and is one that is not insured or guaranteed by the Government or any other institution. Conventional loans conform to guidelines and limits set by Fannie May and Freddie Mac and are also called Conforming Loans. The loan limit depends on the county and state where the property is located. See what the limits are in your area.
Conventional loans can have either fixed rates where the rate is set for the entire term of the loan or they can be adjustable rate mortgage (ARM) where initially the rate can be fixed but then will be periodically adjusted according to specific index and margin.
Conventional loans usually have the strictest guidelines but offer best terms and rates. Talk to one of MortgagedLA loan officers to learn more about Conventional Mortgage Loan program.