Conventional loans come in a variety of options with several advantages for qualified borrowers. A conventional loan is a mortgage that is not guaranteed or insured by any government agency, including the Federal Housing Administration (FHA), the Farmers Home Administration (FmHA) and the Department of Veterans Affairs (VA). It is typically a fixed term at a set rate and conforms to the loan limits set forth by Freddie Mac and Fannie Mae.
Advantages of a Conventional Loan
- A range of down payment options
- Advantages for higher down payments
- Option to eliminate mortgage insurance with a 20% down payment
- Financing for properties commonly restricted by government loans