Definition
A mortgage not insured or guaranteed by a government agency, typically conforming to Fannie Mae or Freddie Mac standards.
Example
With a 745 score and 10% down, conventional financing with cancellable PMI cost less than FHA.
Related terms
- Acceleration Clause
- Accrued Interest
- Adjustable Rate Cap
- Adjustable-Rate Mortgage
- Amortization
- Annual Percentage Rate
Frequently asked questions
What does Conventional Loan mean in real estate?
A mortgage not insured or guaranteed by a government agency, typically conforming to Fannie Mae or Freddie Mac standards.
How is Conventional Loan used in practice?
With a 745 score and 10% down, conventional financing with cancellable PMI cost less than FHA.
This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.