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Mortgage Glossary

Conventional Loan

Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker

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.

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