
Our online application is fast, secure, and easy.
We ensure a speedy process.
Receive your cash as soon as the next business day.
As a first-time homebuyer or someone looking to invest in a new property, it's crucial to understand the different types of loans available. One common type of loan is a fixed conforming loan, which is a popular choice for many borrowers. In this article, we'll take a closer look at what a fixed conforming loan is, its benefits, and how to qualify for one.
A fixed conforming loan is a mortgage that conforms to the guidelines set by Fannie Mae and Freddie Mac, two government-sponsored entities that primarily buy conventional mortgages from banks and other lenders. The term conforming refers to the loan conforming to Fannie Mae and Freddie Mac's underwriting guidelines. A fixed conforming loan means the interest rate will remain the same throughout the loan term irrespective of any changes in the market.
There are several advantages of getting a fixed conforming loan, including:
To qualify for a fixed conforming loan, you need to meet specific criteria such as:
If you're interested in getting a fixed conforming loan, you should start by comparing different lenders' rates and terms to find the best fit for your situation. You can also work with a mortgage broker who can help you find the best loan and help you navigate the application process.
In conclusion, a fixed conforming loan is a reliable option for borrowers who want to buy a home or invest in a property. Its predictability and lower interest rates make it a popular option for many borrowers. However, before applying for a fixed conforming loan, ensure you meet the eligibility requirements and fully understand the terms and conditions of the loan.