Conventional

Conventional loans are a type of mortgage that is not insured or guaranteed by the government, such as the Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA). Instead, conventional loans are offered by private lenders, including banks, credit unions, and mortgage companies. These loans typically have stricter eligibility requirements compared to government-backed loans, including higher credit score standards and larger down payment amounts. Conventional loans offer flexibility in terms of loan amounts, repayment terms, and interest rates, allowing borrowers to choose from various options to suit their financial needs and goals. Borrowers who can meet the stringent qualification criteria often benefit from competitive interest rates and terms, making conventional loans an attractive option for many homebuyers. Additionally, conventional loans do not require mortgage insurance once the borrower has built sufficient equity in the property, further reducing the overall cost of homeownership.