A conventional loan is a mortgage that is not directly insured or guaranteed by a government agency. It is one of the most common home loan options for qualified borrowers.
How conventional loans work
Conventional loans are offered by private lenders and may follow guidelines set by entities such as Fannie Mae or Freddie Mac. Borrowers are typically reviewed based on credit, income, assets, debts, down payment, and property details.
Who may consider a conventional loan?
- Buyers with established credit
- Borrowers with stable income
- Homeowners refinancing
- Buyers with 3% to 20% or more down, depending on eligibility
- Second home buyers
- Borrowers seeking flexible term options
Want to see if conventional loan options may fit your profile?
Conventional loan benefits to understand
- Multiple down payment options may be available
- Fixed-rate and adjustable-rate options may exist
- Can be used for primary homes, second homes, and some investment properties
- Mortgage insurance may be removable in some cases
- Broad lender availability
What to consider
- Credit requirements may be higher than some programs
- PMI may apply with lower down payments
- Loan limits may apply
- Property and occupancy type matter
- Pricing may vary by borrower profile
Explore purchase, refinance, and second home options.
Get StartedConventional loan eligibility, down payment, PMI, pricing, and loan limits vary by borrower profile, property, lender, and program guidelines.