Snohomish County Conventional Financing Information

If other financial vehicles are not an option for you or you would like more flexibility with your financing then a Conventional home loan or multi-family home loan maybe the right answer. Conventional financing has a variety of downpayment options and most common are 5%, 10%, 15%, or 20% – higher down payments can always be achieved depending on individual situations. Also, it should be noted that Conventional loans can be either conforming or nonconforming based on loan amount and area which are governed by Fannie Mac (Fannie Mae & Freddie Mac guidelines).

Conforming Loan: Conforming loans are loans that meet (conform) to Fannie Mac guidelines that are based on loan limit. These loan limits tend vary from County to County but the range is under $417k. Conforming loans typically have a lower interest rate because the loan conforms to those specific guidelines.

Non Conforming Loan: Nonconforming loans are loans that don’t meet Fannie Mac guidelines and an example is Jumbo loans. While Jumbo loans (over $417k) are nonconforming, they are still allowed to be sold to Fannie Mac or other investors as long as the loan meets certain standards.

What Homes Qualify for Conventional Financing?

• Homes that are need of repairs.
• Investment homes and multi-family properties.
• Unique homes that don’t meet FHA, VA or USDA guidelines.