Conforming Residential Mortgages

Conforming residential mortgages include Conventional mortgages, FHA and VA loans. For conventional loans, the guidelines are established by Fannie Mae and Freddie Mac and all mortgages are insured by them. Unlike conforming residential mortgages, commercial mortgages provide loans for non-residential purposes.

Conventional Loans

The guidelines for FHA loans are established by HUD and insured by them. The guidelines for VA loans are established by the Veterans Administration and are insured by them.

FHA Loans

FHA loans, which are insured by HUD, have a minimum down payment of 3.5%. However, the difference between conforming and FHA loans is that HUD requires an upfront mortgage insurance and a monthly mortage insurance premium, making it slightly more expensive than conforming loans. However, the guidelines for obtaining an FHA loan are more relaxed. FHA can accept lower credit scores as well. Like conforming loans, FHA loans also have a limit of $453,100 and depending on the counties there is a maximum high balance limit of $679,650.

VA Loans

Unlike other loans, VA loans allow 100% financing for a purchase or refinance. There is no down payment required. Likewise, you can refinance or get cash out with minimum requirements.