Conventional loan
A mortgage not insured or guaranteed by the government. Most conventional loans follow Fannie Mae and Freddie Mac guidelines. The main non-government option for most buyers.
Every term like this one lights up in the step you're on.
Free to set up. No credit card.Part 1 of 4
Why a seller cares
A conventional buyer is the most common kind, and their loan carries the fewest property rules. The appraisal still matters, but the inspector is not applying an FHA checklist to your peeling paint.
Part 2 of 4
A simple example
Two financed offers at $300,000: one conventional with 10% down, one FHA with 3.5% down. Both need an appraisal; only one brings extra property standards.
| The buyer's loan | What it asks of your home |
|---|---|
| Conventional | An appraisal at or above the price |
| FHA or VA | An appraisal plus the program's minimum property standards |
| Cash | Only whatever inspection the buyer chooses |
Conventional financing is the middle of the road: a real loan, with the lightest touch on the house.
Part 3 of 4
What people get wrong
That conventional means the bank owns the loan. Most are sold to Fannie Mae or Freddie Mac; conventional means not government-insured.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
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