MORTGAGE GLOSSARY
What Is a Conventional Loan?
The short definition
A conventional loan is a mortgage that isn't insured or guaranteed by a government agency, unlike an FHA loan or VA loan. It's the most common loan type overall.
What it typically requires
Conventional loans generally require a somewhat higher credit score than FHA loans, though down payments can still be as low as 3–5% on many programs. Down payments under 20% typically require PMI.
Why buyers choose it
Conventional loans often come with more flexibility on loan amounts and property types, and PMI can be removed once enough equity is built — unlike FHA mortgage insurance, which typically lasts the life of the loan.
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