Conventional Loans
A Conventional loan would be any type of creditor agreement that is not financed or supported by the Veterans Administration (V.A.) or the Federal Housing Administration (FHA). Conventional loans are protected by Fannie Mae (FNMA) and Freddie Mac (FHLMC), which are government-sponsored entities.
The two kinds of Conventional loans are conforming and non-conforming. A conforming loan must meet the guidelines set by government-sponsored entities like FNMA and FHLMC. A loan that fails to meet these guidelines would be considered non-conforming.
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Jumbo Loan
If the amount of a loan exceeds the limit set by Fannie Mae (FNMA) and Freddie Mac (FHLMC), it’s a Jumbo loan. A jumbo loan includes any loan with an amount of over $ 647,200.
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