Conventional Loans

Conventional loans are secured by government sponsored entities or GSEs such as Fannie Mae and Freddie Mac. Conventional loans can be made to purchase or refinance homes with first and second mortgages on single family to four family homes. A single family federal loan application from Fannie Mae and Freddie Mac has a first mortgage loan limit of $417,000 unless you live in a high cost area. Conventional loans can be fixed rate mortgages or adjustable rate mortgages ranging from 3,5,7, and 10 years. If you only plan on living in the home for 3-10 years a conventional adjustable rate mortgage may be advantageous as you will most likely have a lower payment and interest rate compared to a 30 year fixed loan. keep in mind that Conventional loans usually require more money down if you are purchasing a home compared to an FHA loan.