A conventional loan is a mortgage loan that's not backed by a government agency. These loans come in all shapes and sizes, and while they don't provide some of the benefits as FHA, VA and USDA loans, conventional loans remain the most common type of mortgage loan.
A conventional loan is a mortgage loan that's not backed by a government agency. While some government-backed loans provide unique benefits to homebuyers, conventional loans remain far and away the most common type of mortgage.
According to the National Association of Home Builders, conventional loans accounted for 78.5% of new home sales in the first quarter of 2022.
If you're thinking about buying a home, here's what you should know about conventional loans to get an idea of whether it's the right fit for you.