Mortgage glossary
Conventional loan
Definition: A conventional loan is a mortgage not insured or guaranteed by a government agency, typically following Fannie Mae or Freddie Mac guidelines on credit, income, down payment, and property.
Conventional loans are the most common mortgages. Down payments can start as low as 3% for eligible buyers, and private mortgage insurance is usually required when the down payment is under 20%. Unlike FHA mortgage insurance, PMI can generally be removed once enough equity is built.
Our conventional options include up to 97% LTV and 105% CLTV, a minimum score of 600 when LTV is above 80%, no minimum score when LTV is below 80%, and no-FICO options. Additional terms and conditions apply, and all borrowers must qualify.
Related terms
Reviewed by Kyle Richardson, NMLS #863464. General information, not advice for your specific situation. All glossary terms
Ready when you are.
Start your full application in about 10 minutes, or call and talk to a real person on the team.
Not ready to apply? See your options in 60 seconds