What is it?
A conventional loan is a regular home loan that is not backed by the government. It is the most common type of mortgage. Lenders have stricter rules for these loans — but if you qualify, you usually get solid terms and flexibility.
Good fit when...
- Buyers putting down 5% or more
- People with a credit score of 620 or higher
- Buyers who want to stop paying mortgage insurance once they reach 20% equity
- Buying a primary home, a vacation home, or an investment property
- People with steady, easy-to-document income
Probably not the right fit if...
- Buyers with a credit score below 620
- Veterans — a VA loan usually offers better terms
- Buyers in rural areas — a USDA loan may be a better fit
- Self-employed people with complex taxes — other loan types work better
Not sure if this is the right loan for you?
Take the loan finder quiz or book a free call. I will look at your full picture and tell you exactly what makes sense.