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Is a Conventional Loan Right For You?

August 1, 2012

A conventional loan is one that is not insured by a government entity. That means these loans are made entirely in the private sector, without any government approval. Conventional loans are either conforming or nonconforming types. Since Fannie Mae and Freddie Mac are stockholder-owned corporations and are not part of the federal government, a conventional loan falls either within the rules and guidelines (conforming)  that have been set up by Fannie Mae and Freddie Mac or it falls outside(non-conforming). If you are going for a conventional loan, chances are you will be required to pay a larger down payment than required by a government insured or guaranteed loan. If your down payment is less than 20 percent you will be required to purchase private mortgage insurance. Conventional loans can be fixed rate mortgages, adjustable rate mortgages, balloon mortgages, or hybrid loans. Almost any type of loan that you take, if not issued by a government entity, is considered a conventional loan.

Read more about Conventional Loans to see if its right for you at the links below:

What Is a Conventional Loan?
By Melvin Richardson, eHow Contributor

Conventional Loans Explained

At Platinum Mortgage Company we have a large selection of loan programs and specialize in conventional loans. Right now we are offering a conventional loan with debt to income (DTI) up to 58%! If you are searching for a conventional loan we are your team!  Contact Us Today!

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