Most home loans are conventional. Private lenders make them and usually sell them to Fannie Mae or Freddie Mac, the two companies whose guidelines set the standard for credit, income and down payment.
Why it matters
For borrowers with steady income and solid credit it is often the most flexible choice. With a smaller down payment it usually carries private mortgage insurance, which can be removed later as you build equity.
Where you meet it
Whenever loan types are compared. Our guide on FHA, conventional, VA and USDA loans explains how they differ.
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