Conventional

A conventional mortgage is a type of home loan that is not guaranteed or insured by the federal government. Instead, it is originated and funded by private lenders such as banks, credit unions, or mortgage companies. Conventional mortgages typically require a down payment of at least 3% to 20% of the home's purchase price, depending on the lender's requirements and the borrower's creditworthiness. A down payment of less than 20% will require borrower to purchase Private mortgage insurance.

Conventional mortgages usually have fixed or adjustable interest rates, and the repayment term can range from 10 to 30 years. The interest rates and terms of the loan depend on various factors, including the borrower's credit score, income, and the amount of the down payment.

Conventional mortgages are different from government-backed loans such as FHA, VA, or USDA loans, which are guaranteed by the government and have different eligibility requirements and loan terms. Conventional mortgages are typically used to purchase primary residences, second homes, or investme