Conventional Loans
A conventional loan is a common home loan that is not insured by FHA, VA, or USDA. Lenders review credit, income, assets, the property, and how you plan to use the home.
Before you decide
- Conventional loans are often compared with FHA, VA, USDA, jumbo, and portfolio options.
- Private mortgage insurance may apply when the down payment or equity is limited.
- Conventional is not automatically better than FHA; the better fit depends on the full situation.
When A Conventional Loan May Help
Conventional loans are a common path for buying or refinancing a home. They may work well when the credit, income, down payment or equity, and property all fit the lender’s rules.
Why It Is Worth Comparing
The best choice is not always obvious. FHA may be stronger for one household, VA may be available for another, and jumbo or portfolio options may matter when the loan size or property does not fit standard rules.
Keep reading
A purchase loan helps a borrower buy a home and is evaluated through income, assets, credit, property, occupancy, down payment, and program-specific rules.
Refinance MortgagesA refinance replaces an existing mortgage with a new loan structure and should be evaluated by purpose, costs, payment change, equity, timeline, and break-even logic.
Debt-to-Income RatioDebt-to-income ratio compares the monthly debts a lender counts with the income a lender can document. It is one part of mortgage approval.
LTV and CLTVLTV compares one loan balance to property value, while CLTV considers combined liens; both affect mortgage eligibility, pricing, insurance, and equity options.
Where this information comes from
Fannie Mae - agency
https://selling-guide.fanniemae.com/NMLS - official
https://www.nmlsconsumeraccess.org/Reviewed by Nick Cunningham, NMLS #907393. Last reviewed 2026-06-07.
Educational information only. Not personal financial, legal, tax, or benefits advice.