What is a conventional mortgage loan?

Answer

A conventional mortgage is a loan that is not backed by the government, as an FHA loan is. Conventional loans usually offer better interest rates than FHA loans do because the standards are higher to qualify for one.

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Less time to process

Because the government does not back conventional mortgages, these loans typically take less time to process. You typically need to put down 20 percent of the purchase price of the home and get a conventional loan for 80 percent of the purchase price to avoid paying private mortgage insurance.

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