[quote=spdrun]”Conventional loan” is the term for a non-GSE loan, at least locally to me. They won’t lock 4% for 30 years, but they’ll lock 4-4.5% for 10 years, which is enough in my book.[/quote]
I think you misunderstood. A “conventional” loan is not FHA or VA, both of which will finance with (usually) lower down payments than conventional. Neither are GSE’s. They are government agencies. Conventional loans today are generally 20% down and don’t require PMI, though some lenders are free to make up their own rules. Most though not all conventional loans today are also conforming loans (“conforming” to the GSE requirements) if they’re below the conforming loan limits and meet the other requirements.
[quote=SK in CV]… Conventional loans today are generally 20% down and don’t require PMI, though some lenders are free to make up their own rules…[/quote]
Yes, regardless of amount borrowed, portfolio lenders are actually conventional lenders who make up their own rules and keep these loans “in-house” but very rarely originate mortgages higher than 80% LTV. Some (ex: JC Morgan Chase) originate Freddie Mac-backed (FHLMC) loans for their portfolio but most mortgages in their portfolio are not GSE-backed loans. JCM Chase keeps FHLMC loans in their own portfolio and typically sells off their FNMA-backed loans.
Some CA conventional lenders have several mtg products which are NOT backed by GSE’s. These mortgages are typically ARMs tailored to the individual borrower’s needs. The bulk of these borrowers are high net-worth individuals with excellent credit. These mortgages are NOT “sub-prime” products.
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