A conventional loan is a mortgage loan that's not backed (insured or guaranteed) by government (through a govt agency).
What is a Conventional Loan ?
Some conventional mortgages can be guaranteed by two government-sponsored enterprises; the Federal National Mortgage Association (Fannie Mae), and the Federal Home Loan Mortgage Corporation (Freddie Mac).
What is a Conventional Loan ?
typically have stricter lending requirements
What is a Conventional Loan ?
Conventional loans may be
Conforming
or
non-conforming.
What is a Conforming Conventional Loan ?
These are loans which meet the guidelines set by Fannie Mae and Freddie Mac
Advantages of a Conventional Loan ?
Flexible
Low Interest Rates
Faster Loan Processing
Various Down Payment Option (starting as low as 3%)
Various Term - from 10 Years to 30 Years.
Reduced PMI (Private Mortgage Insurance)