CONVENTIONAL HOME LOANS

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  • A conventional mortgage or conventional loan is a home buyer’s loan that is not offered or secured by a government entity.

  • It is available through or guaranteed by a private lender or the two government-sponsored enterprises—Fannie Mae and Freddie Mac.

  • Potential borrowers need to complete an official mortgage application, supply required documents, credit history, and current credit score.

  • Conventional loan interest rates tend to be higher than those of government-backed mortgages, such as FHA loans.

 

Information provided by Investopedia - https://www.investopedia.com/terms/c/conventionalmortgage.asp