Conventional purchase loans are mortgages that are not backed by the government, but instead are backed by private lenders and investors. These loans meet the guidelines set by Fannie Mae and Freddie Mac, which are government-chartered companies that buy mortgages from lenders and guarantee them to investors.
One of the main advantages of conventional loans is that they offer more flexibility than government-backed loans. Conventional loans can be used to purchase primary residences, investment properties, and second homes.
It's important to note that guidelines for conventional loans may vary among lenders, so it's advisable to shop around and compare offers from different financial institutions to find the best loan terms and rates that meet your needs. Consulting with a mortgage professional or loan officer can help you navigate the process and determine the most suitable loan option for your specific situation.