A conventional loan is generally considered a mortgage that conforms to Fannie Mae and/or Freddie Mac's guidelines and therefore considered a conforming loan. Even though these two are government-sponsored entities, these loans are not guaranteed or insured by the US government unlike those that are - FHW, VA, and USDA.
Because they conform to their guidelines, Fannie Mae and Freddie Mac typically buy these loans and sell to investors. The purpose of this is to make home loans widely available.
While conventional home loans are generally not an option for those with FICO scores below 620, if you qualify, it is sometimes possible to put down as little as 3%. There are also other advantages to conventional loans:
Northstar Mortgage
2955 Horizon Park Drive, Ste. A
Suwanee, GA 30024
770-995-8078
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