Conventional Loans are loans that are traditionally underwritten with guidelines established by one of two governmental agencies - FNMA (Fannie Mae) and FHLMC (Freddie Mac). These loans have a maximum loan amount that is set by regulation. For single family homes that amount is currently $647,200.
Key Features of Conventional Loans
Financing available up to 95% and higher based on qualification for certain programs
Minimum credit score required is generally 620
Private mortgage insurance is required when less than 20% down payment is made
Available for purchase or refinance loans
Eligible properties can be owner occupied, second/vacation homes and investment
One to four family homes are available for financing