Conventional loans are any loan not guaranteed or insured by the federal government. Conventional loans can be either conforming or non-conforming meaning they use guidelines that conform to government sponsored enterprises like Fannie Mae or Freddie Mac. Conforming loans are the most straightforward in that the requirements like down payment, credit history, income and assets are standard requirements and the path to loan approval. Non-conforming loans include things like sub-prime loans, stated income, no income verification, no assest verification, and even no document mortgages. You can easily see why these have become less common due to the inherent risks involved for lenders. We invite you to learn if this option, or other options we have available, is best for your situation.
