What is a Conventional Loan?
A conventional loan is a type of mortgage that is not backed by a government agency. These loans often require higher credit scores and larger down payments compared to FHA or VA loans.
How a Conventional Loan Works
Conventional loans can be either conforming or non-conforming. Conforming loans meet standards set by Fannie Mae and Freddie Mac, making them eligible for purchase on the secondary market, while non-conforming loans exceed those limits.
Benefits of a Conventional Loan
Borrowers with strong credit can often secure lower interest rates with conventional loans. These loans also provide more flexibility in loan terms and fewer restrictions compared to government-backed mortgages.
Capstone for Mortgage Education and Mortgage Training Classes
At Capstone Institute, we equip students with the knowledge to explain loan products like conventional loans to clients with confidence. Our mortgage education programs and training classes prepare professionals to guide borrowers through every step of the mortgage process.