Mortgage Broker Company - Conventional and Non-Conventional Loans

Cnonventional is not insured or guaranteed by the federal government. Ther are two types of conventional loans conforming and non-conforming. A conforming loan is one that follows the underwriting guidelines of Fannie Mae and Freddie Mac. Conforming loans have 3 requierments: You must have a minimal debt. Your monthly expenses including mortgage payments etc. can not be more the 25 to 28% of your income plus other debts, automobile, student loans, etc, should be no more than 36% - You must have a good credit rating - you must have a good down payment preferable 20%, proof where it came from and a few months of cash left in the bank. Conforming loans are a low risk to the lender and offer the lowest interest rates.

Non-conforming have no guidelines and vary widely from lender to lender. They are know as sub-prime loans (discusses in another post) because you have credit or income verification that is not close to perfect. Your interest rate can vary based on your credit.