By far the most popular type of home loan, conventional home loans are loans that are not insured or guaranteed by any government program like the VA, USDA, or FHA. Conventional loans can be deemed as either conforming and nonconforming.
In a nutshell, conforming loans meet, or "conform" to, guidelines and loan size limits set by the Federal Government, while nonconforming loans do not.
Conforming loan limits are set each year by the Federal Housing Finance Agency (FHFA), which oversees Fannie Mae and Freddie Mac, the two main financial corporations that purchase mortgages from lenders. Conforming loan limits have a set baseline amount, however they may be higher depending on the county you live in and whether it has been designated as a "higher-cost" area. You can view the conforming loan limits for all counties in the US using the map here.
An example of a nonconforming loan is a jumbo loan. Jumbo loans (also called jumbo mortgages) are loans written for an amount that exceeds the conforming loan limits.
At the end of 2019, the baseline loan limit for Missoula County for 2020 was raised to $510,400 for a single-family home.
Conventional Home Loans offer a variety of benefits to borrowers, including:
Mann Mortgage is a trusted & proven national lender headquartered in Montana, and we've been helping families with home purchases and refinances for over 30 years. Please reach out to learn more about conventional loans and whether this is the right option for you. We can answer any other questions you have about purchasing or refinancing a home in Missoula and will help you find a program that best meets your needs.
Call the Mann Mortgage Missoula South office or email us. You can also apply online in less than 10 minutes using the secure online application below. We look forward to hearing from you!