Conventional

A conventional loan is a mortgage that is not insured or guaranteed by a government agency. Instead, it follows guidelines published by the major secondary-market investors. Because that category is broad, conventional financing covers many different structures — fixed and adjustable rates, a range of down-payment levels, and several ways mortgage insurance can be handled when a down payment is below the level where it is no longer required.

• Buyers purchasing a primary residence who want flexibility in how the loan is structured.
• Buyers of a second home or an investment property, where several government programs are not available.
• Homeowners refinancing who want to compare more than one down-payment or equity scenario.
• Borrowers who may prefer to avoid the upfront and ongoing insurance structure used by some government programs.

• It is the most widely available category of financing, so it is often the easiest to compare against other paths.
• Down-payment options vary widely depending on eligibility, so the same purchase can often be structured more than one way.
• Mortgage insurance, when required, can typically be structured in several different ways.
• It can be used for occupancy types that some other programs do not allow.

• Credit, income, asset and property standards are set by the investor and are generally applied consistently.
• Depending on the down payment and other factors, mortgage insurance may be required.
• Pricing and eligibility can vary meaningfully with the details of the file, so a general expectation is not a quote.

Conventional financing is a starting point rather than an automatic answer. It is often the widest set of options, which makes it a useful baseline to compare other paths against — but the right structure depends on your cash, your timeline and what you want the payment to do.

Qualification depends on credit history, income, assets, employment, property type, occupancy, and other underwriting factors. Not all applicants will qualify.