Home Buying

Conventional loans are crème de la crème of the mortgage market. This loan type offers the best possible terms and fees as well as relatively sustainable long-term affordability. However, those who come to the table with little equity and lower credit scores may find that a conventional loan costs them more than other alternatives. Here’s how to know if you need to explore your options. A conventional loan is a mortgage originated by banks, lenders and brokers across the country and sold on the primary mortgage market to Fannie Mae and Freddie Mac. This type of loan offers the best terms and rates due to its mass appeal and large-scale availability. However, this mortgage type also contains what’s known in banking as risk-based pricing