Conventional Loans

home financed using a conventional loan program in houston texasConventional loans are mortgage loans offered by non-government sponsored lenders. Any loan that is not guaranteed or insured by the Federal government is a conventional loan. These loan types  include:

  • Fixed Rate Loans
  • Balloon Mortgages and Pledge Asset Loans
  • Jumbo / Construction Loans
  • Reverse Mortgage

Conventional loans are a type of home mortgage in which the underlying terms and conditions meet the funding criteria of Fannie Mae and Freddie Mac. They were the very first traditional mortgage loans offered by local banks and lenders. About 35-50% of mortgages, depending on market conditions and consumer trends, are conventional mortgages. In other words, Fannie Mae and Freddie Mac guarantee or purchase 35-50% of all mortgages. Conventional mortgages may be fixed-rate or adjustable-rate mortgages. Typically, conventional loans , is any loan that conforms to GSE guidelines. A government sponsored enterprise (GSE) is a financial services corporation created by the United States Congress, like Fannie Mae, Freddie Mac or Ginnie Mae. Conventional Loans can either be Conforming or Non-Conforming. Conforming loans follow the guidelines set by Fannie and Freddie. Non-conforming loans do not meet the Fannie nor Freddie guidelines but they are also considered “Conventional Loans”. Balloon mortgages are a type of short-term mortgage.  They require borrowers to make regular payments for a specific interval, then pay off the remaining balance within a relatively short time. Some types of balloon mortgages can be interest-only for 10 years, and the final “balloon” payment to pay off the balance comes as one large installment at the end of the term. For additional information about conventional loans, contact our Home Loan Specialists at 281-860-2533 or use any of the tools in this website.   Apply for Texas conventional loans