A mortgage not backed by a government agency, typically requiring stronger credit and a down payment of 3–20%.
Full Definition
A conventional loan is any mortgage that isn't insured or guaranteed by the federal government. It's the most common loan type in the US. Lenders follow guidelines set by Fannie Mae and Freddie Mac, which determine minimum credit scores, debt-to-income limits, and loan size caps. Conventional loans come in fixed-rate and adjustable-rate varieties and are available for primary residences, second homes, and investment properties. Borrowers with strong credit profiles often get better rates on conventional loans than on government-backed alternatives.
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