WHAT IS A CONVENTIONAL LOAN?
Conventional loans are the most common, accounting for over 75% of all home loans. These are not insured or guaranteed by the government. Instead, they are backed by private lenders such as banks and credit unions. These are broken down into conforming and nonconforming loans, depending on whether or not they conform to guidelines set by the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac),
Lenders look for a credit score of 660 but may accept scores as low as 620. ome lenders offer up to 100% financing, but with anything lower than a 20% downpayment, buyers are required to pay private mortgage insurance (PMI).
Repayment terms are usually 30 years but can also be 15 or 20.
Interest rates can be fixed or adjustable. Higher credit scores result in lower interest rates.
KELLI HIGGINS
785-817-9255 WWW ELEVATEDAGENT CO TMG-CHARLESTON.COM
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