Conventional mortgages make up the majority of all home loans - about 64% in total.
Looking to learn more? Talk to an Essex Mortgage Professional.
WHAT IS A CONVENTIONAL LOAN?
Conventional mortgages are the most popular option for those buyers that are financially stable overall and need a loan less than the conventional limit of $510,400. Conventional mortgages are not insured or guaranteed by any government agency. Instead, they follow guidelines that are established by Fannie Mae and Freddie Mac.
Fannie and Freddie only grant certain lenders the ability to sell loans to them directly. Essex is one of those lenders. Therefore, as we sell direct, you may not encounter certain requirements, conditions or fees imposed by other lenders. The conventional limit of $510,400 does increase in areas where the average selling price of homes is much higher. This is referred to as a high balance loan. A high balance loan serves the market between conventional and jumbo, and is still eligible for purchase by Fannie and Freddie.
WHY GET A CONVENTIONAL LOAN?
Conventional mortgage loans can benefit borrowers in the following ways:
More flexible lending options.
- Available for purchase, refinance or cash out refinance.
- As little as 3% down, depending on loan characteristics.
- May be used to purchase second homes and investment properties.