A conventional mortgage, often referred to as a conventional loan, is a prevalent option you'll encounter when exploring mortgage choices. Offered by most lenders, this loan type is one of the most common ways to finance a home.
A conventional mortgage or loan is a home buyer's loan that isn't secured or provided by a government entity. Instead, these mortgages are available through private lenders, including banks, credit unions, and mortgage companies.
Conventional mortgages are categorized into "conforming" and "nonconforming" loans:
Conforming Loans: These adhere to the guidelines set by Fannie Mae and Freddie Mac, government-sponsored entities that fund the U.S. housing market. The primary rule is the loan size limit, which was set at $647,200 for most of the continental U.S. in 2022. Higher-cost areas have higher limits.
Nonconforming Loans: These include jumbo loans for buyers who need to borrow amounts exceeding the conforming limit for their area. Other nonconforming loans are available to borrowers with poor credit, high debt, or recent bankruptcy, or those purchasing homes with a high loan-to-value ratio.
Conventional mortgages are categorized into "conforming" and "nonconforming" loans:
Conforming Loans: These adhere to the guidelines set by Fannie Mae and Freddie Mac, government-sponsored entities that fund the U.S. housing market. The primary rule is the loan size limit, which was set at $647,200 for most of the continental U.S. in 2022. Higher-cost areas have higher limits.
Nonconforming Loans: These include jumbo loans for buyers who need to borrow amounts exceeding the conforming limit for their area. Other nonconforming loans are available to borrowers with poor credit, high debt, or recent bankruptcy, or those purchasing homes with a high loan-to-value ratio.
Even with a conventional loan, you might qualify for down payment assistance. Various government agencies and community programs offer support to buyers in complex financial situations, regardless of the financing type used.
Conventional mortgages provide flexible options for many buyers, making homeownership accessible even without a large down payment.
Our lending solutions use the perfect hybrid of human-driven insights and technical prowess to process loans faster and significantly reduce costs.
Effective Date: 9/1/2021
All loan approvals are conditional, not guaranteed, and subject to lender review of all information. A loan is conditionally approved when the lender has issued an approval in writing, but until all conditions are met, a loan cannot be funded. Specified rates may not be available for all borrowers. interest rates, and program guidelines, and are subject to change without notice based on applicant’s eligibility and market conditions. Suncoast Mortgage Firm LLC. is an Equal Opportunity Mortgage Broker headquartered in Tampa, Florida. This licensee is performing acts for which a mortgage broker license is required. Suncoast Mortgage Firm LLC. is licensed by the Florida Office of Financial Regulation, NMLS# 1936558. Suncoast Mortgage Firm LLC. is approved to originate Conventional, FHA, VA, and USDA loans, and has the ability to broker such loans to Conventional, FHA, VA, and USDA approved lenders. Suncoast Mortgage Firm LLC. is not acting on behalf of or at the direction of HUD/FHA or the VA.
