A conventional loan is a non-government loan that offers competitive interest rates and requires a minimum down payment of 3-5%. Conventional loans follow guidelines set by Fannie Mae and Freddie Mac.
Conventional loans are the most common types of loans in the mortgage industry. These loans can be conforming or non-conforming. Conforming loans are mortgages that follow financing limits set by the Federal Housing Finance Agency (FHFA). Conventional loans offer the largest selection of loan options with competitive rates. They typically have low-interest rates for eligible borrowers with fair to good credit scores.
- More competitive interest rates
- Down payments as low as 3-5%
- Fewer restrictions compared to government loans
- Fixed and Adjustable-Rate Mortgage (ARM) Terms Available
- No private mortgage insurance (PMI) with 20% equity
- Varied term lengths between 10 and 30 years
This is for informational purposes only and not an offer to lend or extend credit. Subject to credit and income approval. Terms and conditions are subject to change without notice.*