Conventional Loan Training
Conventional Loan Training
A conventional loan, also known as a conforming loan, is a mortgage that is not guaranteed or insured by a government agency such as the Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA).
Conventional mortgages are "plain vanilla" home loans. They are typically fixed in their terms and rate, and follow fairly conservative guidelines for:
- Borrower credit scores
- Minimum down payments
- Debt-to-income ratios
Professionals In The Loan ProcessLoan Officers generally are responsible for generating loan business and taking the initial loan application.
Loan Processors typically do the hard work of double checking the paperwork, correcting any errors, and corresponding with the underwriter to make sure the loan is approved.
Mortgage Underwriters are primarily responsible for reviewing the loan application to access risk to determine whether to approve or deny the loan.
Find Training For Conventional Loans
Where Loan Processors and Mortgage Underwriters simply require proper training to handle their responsibilities, Loan Officers require licensing. Click the applicable links below to find training or licensing for your preferred jobs.
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About Conventional Loans
A conventional loan is a type of mortgage loan that is not insured or guaranteed by the government. Instead, the loan is backed by private lenders, and its insurance is usually paid by the borrower.
Conventional loans are much more common than government-backed financing. In the first quarter of 2018, conventional loans were used for 74% of all new home sales, making them the most popular home financing option.
What Are The Types Of Conventional Loans?
Conventional mortgages fall into two categories: “conforming†and “nonconforming†loans.
Conforming loans follow the guidelines set by Fannie Mae and Freddie Mac, two government-controlled companies that provide money for the U.S. housing market. The most well-known rule has to do with the size of the loan.
Nonconforming loans, often called jumbo loans, are for borrowers who don’t qualify for a conforming loan because the amount is higher than the conforming limit for the area. Other types of nonconforming loans include those made to borrowers with poor credit, high debt or recent bankruptcy, or on homes with a high loan-to-value ratio.
