Fannie Mae Loans
Fannie Mae was created to purchase and service mortgages from large, established banks, allowing them to lend to more home buyers.
Known as the standard in loan programs, conventional loans are designed to help home buyers find their ideal mortgage plan with simplicity.
Conventional home loans are those not guaranteed or insured by government agencies (like the Federal Housing Administration, the Department of Veterans Affairs, or the U.S. Department of Agriculture). Conventional mortgages are not guaranteed, so any required mortgage insurance is usually paid by the home buyer. Conventional home loans are those not guaranteed or insured by government agencies (like the Federal Housing Administration, the Department of Veterans Affairs, or the U.S. Department of Agriculture). Conventional mortgages are not guaranteed, so any required mortgage insurance is usually paid by the home buyer.
Fannie Mae was created to purchase and service mortgages from large, established banks, allowing them to lend to more home buyers.
This program was created to help maintain liquidity in the housing market, keeping costs low for home buyers.
Conventional loans are approved to borrowers that meet certain criteria. Find out if you qualify.
Depending on your specific situation, conventional loans can offer lower interest rates, a variety of down payment options, varying term lengths for fixed-rate mortgages, and reduced mortgage insurance (MI). If you pay MI on a conventional loan because you put down less than 20%, you typically have the option to cancel the MI when the principal balance on the loan hits approximately 20% equity in the property.
Conventional home loans are a great option for many people, especially those with a strong credit history, steady income, and a larger down payment amount. But you don’t have to check all those boxes to qualify for a conventional home loan! The great thing about conventional loans is that they often offer flexibility on the requirements based on your circumstances.
Requirements for a conventional loan depend on your credit and financial history. Some of the main items your lender will consider are your credit score, debt-to-income ratio, income stream, and cash reserves. Ultimately, your lender needs to determine that you have the funds and financial foundation to pay the loan back. Since conventional loans aren’t backed by the government, the lender assumes more risk in the event of a default.
Finding the path to homeownership is simple with a loan expert from Cherry Creek Mortgage. We have loan officers across the nation ready to help you finance your home dreams.