In essence, a conventional mortgage is a home loan that is not guaranteed or insured by a government agency, like the Federal Housing Administration (FHA), the U.S. Department of Veterans Affairs (VA), or the USDA Rural Housing Service. Here at Patriot Home Mortgage, we’re happy to talk with you about all of your mortgage options, and offer mortgage services for both conventional loans and government-backed loans. 

Conventional mortgages represent around two-thirds of the home loans issued in the U.S., which is why they’re called conventional. Continue reading to learn more about the three categories of conventional mortgages — conforming, jumbo, and nonconforming — and contact Patriot Home Mortgage in St. George or Mesquite to start the mortgage process!

Conforming Mortgage

A conforming mortgage is a loan that fits the funding criteria set by Fannie Mae and Freddie Mac. This criteria primarily sets a loan limit, which is dependent on the area you are looking to buy a house in and average home value. Other guidelines include the borrower’s loan-to-value ratio, debt-to-income ratio, credit score, and other requirements that our mortgage professionals are happy to talk with you about. If you’d like to apply for a conforming mortgage or would like more information about conventional mortgages, contact Patriot Home Mortgage in St. George or Mesquite! 

Benefits of a conforming loan:

  • Can be easier to qualify for
  • May be able to put down a lower down payment
  • Some flexibility in credit score requirements

Conforming mortgages can sometimes be easier to qualify for, because banks feel relatively secure in offering them since they are backed by the government through Fannie Mae and Freddie Mac. 

Nonconforming, or Jumbo Loan

A nonconforming loan is any loan that doesn’t fit within the guideline limits set by Fannie Mae and Freddie Mac, which means that can be larger, and this type of home loan is called a jumbo loan. Nonconforming loans still fit under the umbrella of conventional mortgage.

Interest rates on jumbo mortgages are traditionally higher than those for conforming mortgages, and borrowers will need a better credit score and a larger down payment to apply. Jumbo mortgages are a great option for someone with a stable income who is looking to buy a larger or more expensive home that is outside the lending limit for a conforming mortgage. Learn more about jumbo mortgages and contact us today to set up a consultation. 

Other Nonconforming Loans

There are other reasons why a home loan is nonconforming besides being above the loan limits set by Fannie and Freddie. Other factors like a low credit score, high debt-to-income ratio, or a small down payment can mean that you don’t qualify for a conforming loan. That’s OK, though, because you can still find a nonconforming loan. And you also have other options, like an FHA loan

As with any mortgage, your situation is unique and you may qualify for a conforming mortgage even if you have a lower down payment. Learn more about your mortgage options by visiting Patriot Home Mortgage.

Patriot Home Mortgage

We’re proud to help members of our community find the mortgage that lets them move into the home of their dreams. We’re committed to helping you find the right loan so that you can live better. Whether you’re looking for a conventional mortgage, a VA loan, USDA loan, jumbo loan, or something else, we’re happy to help you find the loan that fits your needs! Our mortgage company has offices in St. George and Mesquite. Follow our blog to learn more, and contact us today to get a free consultation and start the mortgage application process.