Loan programs
Conventional loan
In short
A conventional loan is a mortgage not insured by a government agency, usually following Fannie Mae or Freddie Mac guidelines. It's the most common loan type.
A conventional loan is any mortgage not backed by a government program like FHA, VA, or USDA. Most conventional loans are written to Fannie Mae or Freddie Mac guidelines, which set the standards for qualifying.
Its defining feature versus FHA is how mortgage insurance works: conventional PMI can be removed as equity builds, whereas FHA insurance often stays for the life of the loan. That makes the conventional-versus-FHA choice worth running for your numbers.
Conventional loans suit borrowers with solid credit and steady income, but the right answer depends on down payment, credit, and the property — not a blanket rule.
Related
Current as of August 2026.