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  Conventional Loans
A conventional loan in short is one that is non-FHA or non-CalHFA loan. Conventional lending typically consists of a Fannie Mae, Freddie Mac or similar loan. The distinction up until recently is that this type of loan was the best priced loan for the consumer, and was approved and prepared in a manner that made the loan able to be sold in the open market, meaning Wall Street. The loans were thought of as being high quality, with solid borrowers and nice looking homes. The idea was to take these funded loans, package them together into bundles, and than sell them as investments to Wall Street investors. The sale would be seamless to the borrower, with the exception that they may possibly make their monthly mortgage payments to a different bank. However Fannie Mae and Freddie Mac, the two largest quasi public companies who did conventional loans, were taken over by the Federal Government in October of 2008 for loosening up their qualifying guidelines to the point where too many loans went into default which lead to an onslaught of foreclosures. Conventional lending is still around, however, now instead of financing 100% of the purchase price of a home, you may have to put down 10% or more, and your credit score must be at least 680-700 to qualify. Due to the tightening of underwriting to obtain a conventional loan, CalHFA and FHA have now become a more viable option to obtain a home loan since their downpayment minimum is between zero -3.5% and their minimum credit score to qualify is 620. Nonetheless, is you have at least 10% for a downpayment and at least a 680 credit score, a conventional loan will give you a better interest rate by at least .50%. For more information on conventional loans, feel free to give me a call at 805-276-1942 or click here to send me an e-mail and I'll get back to you at my earliest convenience.
 Best Capital Funding - 6930 Owensmouth Ave. #102 - Canoga Park, CA 91303 Office Phone: (818) 887-2779 Fax: 800-506-0632 Cell Phone: 805-276-1942 Best Capital Funding.
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