Types of Mortgage Loans
Government-insured mortgages like FHA, VA, and USDA offers great benefits. Because these loans are insured by the government, they offer lower down payment requirements and flexible approvals for various credit profiles.
Conventional (conforming) mortgages conform to guidelines established by Fannie Mae and Freddie Mac. County loan limits are established by the FHFA.
Conventional (non-conforming) mortgages are non-government insured loans that don’t conform to Fannie and Freddie guidelines. These are often referred to as non-Qualified (non-QM) loans such as jumbo loans, bank statement loans, foreign national loans, etc.