This week I’d like to share information regarding loans. Many of my clients choose to use financing to purchase property. This article will review several of the more common loan and lender types. I hope this is helpful for everyone!
These loans can be fixed rate, adjustable or balloon loans. They can be conforming or non-conforming. A conforming loan falls within the rules set by Freddie Mac and Fannie Mae.
Conforming loans are mortgages that conform to financing limits set by the Federal Housing Finance Agency (FHFA) and meet underwriting guidelines set by Fannie Mae and Freddie Mac, whereas nonconforming loans do not. Conforming and nonconforming loans are both types of conventional loans.…