Conventional loan
A mortgage not insured or guaranteed by a government program such as FHA, VA, or USDA.
Conventional loans follow agency guidelines rather than a government insurance program. They tend to reward stronger credit and more equity, and they allow mortgage insurance to be removed once the loan reaches the program’s equity threshold, which government-insured loans do not always permit.
Lenders layer their own overlays on top of agency guidelines, so two lenders can reach different answers on the same file.
Related terms
- FHA loanA government-insured mortgage designed to widen access to financing, with lower down payment and credit thresholds than most conventional loans.
- VA loanA mortgage guaranteed by the Department of Veterans Affairs for eligible service members, veterans, and some surviving spouses.
- USDA loanA government-backed loan for eligible rural and suburban areas that can allow no down payment for qualifying borrowers.
- PMI (Private Mortgage Insurance)Insurance on a conventional loan that protects the lender when the borrower has less than the program’s required equity.
- Conforming loanA conventional mortgage that fits the size and eligibility rules the major agencies will buy.
Go deeper
More in Mortgage & lending
Have a question about your own situation?
Ondo handles brokerage, lending, property management and notary under one roof, so the answer does not change depending on who you ask.
Loan information is provided by Ondo Real Estate (NMLS ID on file). This is not a commitment to lend, a loan approval, or an offer of credit. Rates, terms, and payments shown are estimates for illustration only, are not a quote, and are subject to credit approval, underwriting, and market conditions. You are not required to use Ondo for financing to buy or sell with Ondo. Equal Housing Lender. Program rules, fees, and county loan limits change. Confirm the current published schedule and lender overlays. Nothing here is a quote, a lock, or a credit decision. Licensing and disclosures