Conventional mortgage


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Conventional mortgage

A loan based on the credit of the borrower and on the collateral for the mortgage.
References in periodicals archive ?
According to the new mortgage loan issuance order, approved in June 2016, a conventional mortgage loan will be issued only to Azerbaijani citizens and only in the national currency for a term from 3 years to 25 years, while preferential mortgage - up to 30 years to purchase a house, owned by the citizen.
The advantage for middle-class borrowers was possible in part because government-chartered firms guarantee that lenders will be paid on a conventional mortgage even if a borrower defaults.
The key differentiator between an Islamic and conventional mortgage is the process which the financing is offered.
In the past, those seeking to buy manufactured homes have had to seek financing though consumer loans, short-term loans that are usually three or four percentage points higher than a conventional mortgage.
Representatives of the four major Islamic home-finance institutions in the United States said they do not track the reasons customers choose them over conventional mortgage brokers.
However, the spread between jumbo and conventional mortgage rates is affected by more than just the different sort of homes that belong to the jumbo pool.
The remainder of the amount he would attempt to finance through the use of a conventional mortgage.
Eyebrows were raised a while back when it pioneered a package linking a conventional mortgage secured on somebody's home with an unsecured consumer loan - at the same rate of interest.
A conforming conventional mortgage is one that goes up to $322,700.
The application process is much quicker and less expensive than a conventional mortgage because credit checks, appraisals and title searches are not required.
What differs from previous Ginnie Mae "choice" proposals is that this bill would cover any conventional mortgage with a loan-to-value ratio above 80 percent, up to the conforming mortgage limit, which is currently $275,000.
The diversity of the participants' goals and strategies also complicates the task: The government mortgage insurers that account for most of the risk-bearing activity in the government mortgage system are nonprofit and accept nearly all the credit risk of the mortgages they insure; the mortgage originators, insurers, and purchasers that make up the conventional mortgage system are profit-seeking and generally act to spread the risk throughout the system.

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