Conventional Loan

A Conventional Loan is a type of mortgage that is not backed by the U.S. federal government and is available through private lenders.

Conventional Loans are the most popular type of mortgage loan. They come in a range of terms including the common 15-year and 30-year terms. Since conventional mortgage loans are not insured by the government like FHA or VA Loans, they have stricter credit standards. Some Conventional Loans have the option for down payments as low as 3% of the purchase price, but if you put down less than 20% you will have to add Private Mortgage Insurance (PMI) to your payment for a period of time.