Conventional Mortgage Loan

# A mortgage loan up to a maximum of 75% of the lending value of the property. Mortgage loan insurance is not required for this type of mortgage. Covenant A clause in a legal document which, in the case of a mortgage, gives the parties to the mortgage a right or an obligation. For example, a covenant can impose the obligation on a borrower to make mortgage payments in certain amounts on certain dates. A mortgage document consists of covenants agreed to by the borrower and the lender.

# a fixed- or adjustable-rate, fully amortized loan secured by a mortgage or deed of trust that is not insured or guaranteed by an agency of the federal government (such as FHA or VA).

# A first mortgage where the amount can not be more than 75% of the appraised property value.

# A mortgage loan which is not guaranteed by the federal government (HUD/Federal Housing Administration, Veterans Affairs, Agriculture/Rural Development) and which is either underwritten to conservative loan to value ratios or includes a Primary Mortgage Insurance Policy.