Conventional Loans

If you’re considering buying a house, you will probably need to take out a mortgage loan for financing. As you explore your options, you’ll quickly discover that there are many different types of loans to choose from.

With so many choices, picking the right loan for your needs can be tough. For many borrowers, a conventional loan is the best choice.

Let’s take a look at what a conventional loan is, how it works, and how to qualify for this loan.

What is a Conventional Mortgage?

A conventional loan is any mortgage loan that is not insured or guaranteed by the government (such as under the Federal Housing Administration, Department of Veterans Affairs, or Department of Agriculture loan programs). Conventional loans can be conforming or non-conforming.

A conventional loan often offers a higher interest rate. It can also require a higher credit score to qualify.