A conventional mortgage is simply a home loan that is not insured by the government. There are generally two distinct types of conventional home mortgages, conforming and non-conforming.
A conforming conventional mortgage is a mortgage loan that meets the guidelines set by Fannie Mae and Freddie Mac, the two major Government Sponsored Entities in the mortgage industry. A conforming conventional mortgage is no more than $417,500.00.
A non-conforming conventional loan can be over the $417,500 loan limit, which would be considered a Jumbo mortgage. A non-conforming conventional mortgage may not also meet all of the GSE’s guidelines in other areas as well, as lenders can set their own underwriting guidelines.
Conventional home mortgage loans generally require a larger down payment and higher credit scores than a government backed loan such as an FHA home loan or VA mortgage.
Conventional mortgages provide your NJ Lender the opportunity to tailor their available mortgage loan programs to your specific needs. Fees can sometimes be included in a conventional mortgage and often, insurance, or PMI is optional. Some conventional mortgage programs allow the use of collateral to supplement a borrower with less credit appeal. Rates are also an advantage with a conventional mortgage, if you have a good credit score, you can often obtain a great mortgage rate from your lender.
Cornerstone Mortgage Group is your prime NJ lender for conventional mortgages. Find out what your options are for obtaining a conventional mortgage program with us by filling out our quick and easy “Apply Online” form. If you don’t qualify for a conventional mortgage with us, we can help match you to a government backed program more suited to your unique situation, which is why we pride ourselves in being the best NJ lenders available!
