Conventional loans are loans that are secured by government sponsored entities such as Fannie Mae and Freddie Mac. They can be made to purchase or refinance homes with first and second mortgages on single family to four family homes. This loan can be used for anyone from first-time home buyers, people looking to upgrade, investment homes or second homes.
In general, Fannie Mae and Freddie Mac's single family, first mortgage loan limit is $453,100. This limit is reviewed annually and, if needed, changed to reflect changes in the national average price for single family homes.
Loans which are larger than the limits set by Fannie Mae and Freddie Mac are called jumbo loans. Because jumbo loans are not funded by these government sponsored entities, they usually carry a higher interest rate and some additional underwriting requirements.
In addition to common loan structures such as fixed rate, adjustable rate and balloon loans, Fannie Mae and Freddie Mac also have loan programs for low to no down payments, community lending and affordable housing initiatives.
Calculate your monthly payment for fixed rate or adjustable rate loans.