Conventional Loan

A conventional conforming loan is a traditional mortgage that adheres to the standardized underwriting and size guidelines established by government-sponsored enterprises Fannie Mae and Freddie Mac. Unlike FHA, VA, or USDA loans, conventional loans carry no government backing. They offer down payment options as low as 3% to 5% for primary residences and allow borrowers to cancel monthly private mortgage insurance (PMI) once home equity reaches 80% to 78%.