Conventional Loan

• Conform to Fannie Mae/Freddie Mac guidelines with regard to determining credit worthiness of lending.
• Typically require higher qualifying FICO credit scores.
• Rates of interest tend to be higher on average because they are not government insured.
• Does not need to be your primary residence to receive funding.
• Can come in many forms such as construction loans or rehab loans.
• Max income limits may apply for certain programs, typically those meant to assist first time home buyers.
• Max loan to value is typically less, whether for reducing your payments or getting equity from the home.
• Monthly Mortgage insurance can be applicable depending on the total loan to value.
• More stringent debt-to-income ratio requirements can be more flexible with compensating factors.

Learn more about conventional loan programs here: http://www.fanniemae.com/portal/index