Conventional Loan
A conventional loan is a mortgage not insured by a government agency, typically requiring a 620+ credit score and 3–20% down.
What Conventional Loan means
Conventional loans are the most common type and are sold to Fannie Mae or Freddie Mac. Put 20% down and you avoid PMI; put less and you pay PMI until you reach 20% equity.
Florida example
A Florida buyer with a 740 score and 10% down gets a competitive conventional rate but pays PMI until the balance hits 80% of value. Strong credit makes conventional cheaper than FHA for many well-qualified borrowers.
A non-government loan
A conventional loan is not backed by a government program like FHA, VA, or USDA. It follows Fannie Mae and Freddie Mac guidelines and is the most common loan in the country.
It rewards strong credit with better rates and lets you cancel mortgage insurance once you build 20% equity.
Who it fits
Conventional loans work best for buyers with a 620-plus score and steady income. Down payments can start as low as 3% for first-time buyers.
If your credit is solid, conventional often beats FHA on total cost. Reach out and we will compare both for you.
Related program: Learn more →
Verify the details for your own situation against these government and agency sources: HUD FHA loan program and HUD Handbook 4000.1 (FHA rules).