Classification of Mortgages

[lara]

Mortgages can be classified in a bewildering manner ranging from fixed rates vs ARM, conforming vs non comforming and conventional vs non conventional. Can someone straighten out the various classification for easy reading?

[agape]

As far as I know, a conventional mortgage is one made by banks or other lending institutions that is not insured by the FHA, FmHA or VA.

[tiara]

Conforming loans are loans that meet the guidelines set by Frannie Mae and Freddie Mac. These are government backed companies that purchased loans.

[admin]

Conventional loans are not quite as all encompassing as being anything that does not fit FHA or VA. They do not include stated income loans or the ever so infamous subprime loan.