About Conventional Mortgages
A conventional mortgage is a private-sector loan that is not guaranteed or insured by any government agency. Because these loans often feature the most competitive interest rates and flexible terms, they serve as the standard choice for home buyers with established credit.
Down payment requirements are flexible, ranging from as little as 3% for first-time buyers to 20% or more. While a larger down payment can eliminate the need for private mortgage insurance (PMI), low-equity options allow more families to access homeownership sooner.
This loan type is best suited for borrowers who demonstrate financial stability through consistent income and a healthy credit profile. It is the primary vehicle for financing primary residences, secondary holiday homes, and residential investment properties alike.