Conventional Programs

Question 1

what is a conventional loan?

Answer 1

Conventional means setting the standard.
First type of mortgages available
Not backed by government or insured
Still meet the guidelines of freddie and fannie

Question 2

WHAT IS FANNIE MAE AND FREDDIE MAC
WHAT ARE GSE’s?

Answer 2

The federal national mortgage association (fannie mae)
Federal home loan mortgage corporation
(Freddie mac)
Government Sponsored enterprise

Question 3

WHAT IS FANNIE MAE’s JOB?

Answer 3

An entity responsible for buying mortgages from lenders typically buys loans from large lenders such as high volume depository institutions

Question 4

FREDDIE MAC’s JOB?

Answer 4

To counterbalance Fannie Mae Freddie Mac typically works with small lenders. These lenders are often referred to as thrifts.

Question 5

What is a conventional non-conforming loan?

Answer 5

A non-conforming mortgage loan is a conventional loan that does not meet the requirements set by Fannie Mae or Freddie Mac considered risky because nonconventional loans are non-conforming there are no specific set qualifying requirements