Understand the Basics: What is a Conventional Loan?


Understand the Basics: What is a Conventional Loan?

A conventional loan, or “conv loan,” is a mortgage that is not backed by a government agency like the FHA or VA. Conv loans are typically offered by banks and credit unions, and they are subject to the lender’s own underwriting guidelines. This means that conv loans can have stricter credit and income requirements than government-backed loans.

Conv loans can be a good option for borrowers with good credit and a stable income. They often have lower interest rates than government-backed loans, and they can offer more flexibility in terms of loan terms and conditions.

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