Conventional Home Loans

Loans guaranteed or insured by outside agencies like FHA or VA are known as conventional loans. These loans adhere to Federal National Mortgage Association (Fannie Mae) guidelines are eligible for purchase by Fannie Mae or Freddie Mac (Federal Home Loan Mortgage Corporation). Fannie Mae is created by the federal government for buying and selling conventional mortgages, setting the maximum loan amounts and requirements for borrowers. Conventional mortgages include portfolio loans, construction loans, and subprime loans. Most counties within California have a 2017 conforming loan limit of $424,100, for a single-family home. Higher-priced areas, like those in the San Francisco Bay Area, have conventional limits of up to $636,150.