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 Courtesy
of:
Commercial Federal Bank
Conventional
Mortgages
Conventional
financing guidelines are strongly influenced by the secondary
market entities, FHLMC (Federal Home Loan Mortgage Corporation)
and FNMA (Federal National Mortgage Association). Both of these
entities purchase loans from lenders across the United States,
provided the loan criteria meets their established guidelines.
Conventional loan products include 15-30 year fixed rates as well
as 5/25 and 7/23 convertible mortgages. Lenders that wish to remain
owners of a loan may set their own guidelines for particular products.
This is known as a "Portfolio" loan because the lender holds the
loan in their own portfolio of products without the initial intentions
of selling to the secondary market.
Conventional
loans are not government-insured or guaranteed under any government
programs like an FHA or VA loan.
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