A Florida conventional loan is a mortgage loan that is not offered or secured by a government entity but by a private lender such as banks, credit unions, and mortgage companies. These loans can also be available through or guaranteed by the two government-sponsored enterprises, Fannie Mae and Freddie Mac.
Speak with an experienced conventional loan specialist immediately – (855) 501-5927
Between these loan types we can include:
- Fixed Rate Loans
- Balloon Mortgages and Pledge Asset Loans
- Jumbo / Construction Loans
- Reverse Mortgage
Conventional loans can be a type of home mortgage required to conform to Fannie Mae and Freddie Mac’s underwriting requirements and loan limits. Nowadays, conventional mortgages represent two-thirds of the homebuyers’ loans issued in the U.S. Meaning that Fannie Mae and Freddie Mac guarantee or purchase about 35-50% of all mortgages. These were the very first traditional mortgage loans offered by local banks and lenders and may be fixed-rate or adjustable rate mortgages.
There are two main categories for conventional loans in Florida:
- Conforming mortgages, which follows Fannie Mae and Freddie Mac’s guidelines.
- Non-conforming mortgages, a conventional mortgage that surpasses the amount that would allow it to be backed by Fannie Mae or Freddie Mac.
Although all conforming loans are conventional, not all conventional loans qualify as conforming, as an example, we have balloon mortgages, which require regular payments for a specific interval, at the end of the term the borrower has to pay off the remaining balance within a short period of time.
Get more information by reaching our Home Loan Specialists at (855) 501-5927 or send us a message online.