Loan TypesHomebuying Glossary
Conventional Loan
A mortgage not backed by a government agency, typically requiring stronger credit.
In plain English
Conventional loans are originated by private lenders without a government guarantee (unlike FHA, VA, or USDA loans). They can require as little as 3% down for qualified first-time buyers, though PMI applies below 20% down.
Why it matters
Conventional loans are the most common mortgage type and often the cheapest option long-term for buyers with solid credit, since PMI can be removed once you build enough equity.
Where you'll run into it
Guides and tools on TheBuyingPath that cover conventional loan in context.
Related terms
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