Conventional
Loan Programs
Conventional Loan Programs are secured by government sponsored entities or
GSE's such as Fannie Mae and Freddie Mac or by private investors for
loan amounts higher than the limits set by the GSE's. Conventional
loans can be made to purchase or refinance homes with first and second
mortgages on single family to four family homes.
In general,
Fannie Mae and Freddie Mac's single family, first mortgage loan
limit is $333,700 in 2004. This limit is reviewed annually and,
if needed, changed to reflect changes in the national average price
for single family homes. The current loan limit applies to all conventional
mortgages delivered after January 1, 2004.
In addition
to common loan structures such as fixed rate, adjustable rate and
balloon loans, Fannie Mae and Freddie Mac also have loan programs
for low to no down payments, community lending and affordable housing
initiatives, construction to permanent, home improvement and reverse
mortgages
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