A conventional loan is one that is not insured by the United States federal government and occurs just between you and a lender.


Because the payments on this type of loan aren’t covered by the government, conventional loans are tailored for those with a steady income, a solid credit score, and have the necessary money for a down payment.

A recommended down payment using a conventional loan is 20%. Although this is the recommended amount, a majority of people still put down anywhere from 3%-10%. However, if you decided to put down an amount under 20% of the price of the home, it is required that you obtain private mortgage insurance to start.

When applying for a conventional loan, a lender will take many factors into consideration. The biggest thing you can do to help your chances of getting approved is having an excellent credit score. The minimum credit score lenders will accept on a conventional mortgage is 620; however, you may be required to pay a fee if your credit score is less than 740.


Some items that a lender will look over when you apply for a conventional loan is your employment history (proof of income, how long you have been at your current job), your down payment amount, and a credit check.

There are a few different types of conventional loans you can apply for. They include fixed-rate, adjustable-rate, interest-only, conforming, or non-conforming loans. Each of these loan types have their own advantages and disadvantages, so it’s important to speak with your local mortgage broker to ensure you get the one that best suits your specific situation.

The length of your loan’s term will depend on which type of mortgage you decide to go with. For example, you could obtain a 15, 20, or 30-year term.

Does a conventional loan sound like something you may be interested in? To learn more about this loan type (and to identify which is best for you), reach out to our team today! Interested in applying right now to see if you qualify for a loan? Click here to start the process!