Conventional Loan
A mortgage not insured or guaranteed by a government agency such as the FHA, VA or USDA.
What does conventional loan mean?
Conventional loans are the most common mortgage type, made by private lenders and often sold to Fannie Mae or Freddie Mac. They can be conforming or jumbo, and typically need a higher credit score than an FHA loan but avoid FHA mortgage-insurance premiums.
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Conventional Loan — frequently asked
What credit score do I need for a conventional loan?
Most lenders want at least a 620 credit score for a conventional loan, and 740+ unlocks the best rates. Higher scores also reduce your private mortgage insurance cost if you put down less than 20%.
Conventional or FHA loan — which is better?
FHA allows lower credit scores and 3.5% down but carries mortgage insurance for the life of the loan. Conventional needs stronger credit yet lets you drop PMI at 20% equity, often making it cheaper long term for qualified buyers.