Are conforming loans a positive thing?

purcell · Apprentice Joined: 30 Jun 2005 Posts: 2

Lenders are usually very careful when making assessments regarding the deals they make. As you can see by the entire turmoil, they are at risk too, just like the individuals who took the mortgage. That said, such risk taking has been enormously damaging, and the ultimate bearers, Fannie May and Freddie Mac are the obvious examples, as they had to be bailed out. The loans that are conforming to their limits are surely something that was a good idea to be taken, but now, the situation is too complex regarding the two, that I suggest you stay away from them.

galven · Apprentice Joined: 29 Jul 2008 Posts: 2

With a good credit rating, and a good history, you should get good deal because of your credibility. But before you apply, you should know whether you have a high enough credit score (over 650 is ideal). Basically the compensating factors are what can increase it, but you should no there are no strict rules as to what will exactly be considered as conforming the standards. I agree with the previous comment, but if you still want to deal with conforming loans, you should be all right as long as you are planning your budget well

skip · Apprentice Joined: 21 Jul 2006 Posts: 3

Mortgage, for example, is a loan you are given in order to buy the house. Mortgage sum not only depends on the house price, but is in direct relation to it. Now, interest-only mortgages are pretty good deals for you, as they give you a little break immediately after buying a house. However, conforming loans can give you good deals and it seems that these limits have not been as effective as they should have. However, I still think these limits can help you, so be sure to inform yourself of them. Best of luck.

Are conforming loans a positive thing?

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