guaranteed by the government (such as under the Federal Housing Administration, Department of Veterans Affairs, or Department of Agriculture loan programs). Conventional loans can be conforming or non-conforming. A conforming loan is a type of mortgage loan that complies with the financial and funding boundaries laid out by the Federal Housing Finance Agency (FHFA), while a nonconforming loan is a loan that, while not complying with these parameters, offers the empowerment of flexibility. It requires 5% of the loan amount as a downpayment. • A conforming loan: A type of mortgage loan that complies with the financial and funding boundaries laid out by the Federal Housing Finance Agency (FHFA). This compliance makes it eligible to be resold to the government-sponsored enterprises (GSEs) Freddie Mac and Fannie Mae. This resale allows lenders to free up capital for more lending, giving borrowers more favorable terms and offering optimism. • A nonconforming loan: A loan that, while not complying with the parameters established by the FHFA, offers the empowerment of flexibility. This flexibility, tailored to individual needs and circumstances, can empower borrowers to take control and find a loan that best suits their unique situation, giving them the confidence to make the right financial decision. However, if you're buying a home and your down payment is less than 20%, you'll need private mortgage insurance. That can add about $100 per month for a home valued at $100,000. To find the best mortgage professional to guide you through buying a home, seek advice from real estate agents, colleagues, or friends. Banks are generally known for having the fewest mortgage options because their products are tailor-made to suit 73
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