What Is A Conventional Mortgage

We have all heard of conventional mortgages, but we get asked all the time what a conventional mortgage actually is. These days, you really need to have either 20% equity or a 20% down payment to qualify. These are the loans that are purchased by Freddie Mac and Fannie Mae.

One of the best parts of qualifying for a conventional loan is the fact that you probably won’t have any upfront mortgage insurance or monthly mortgage insurance with most programs. The conventional rate and the FHA rates are pretty similar most days but they can fluctuate away from each other a bit. They also do come in 30-year,25-year,15-year, etc, and ARM loans as well.