What it is
A conventional loan is a mortgage that isn't backed by a government agency. It's the most common way Americans finance a home — fixed or adjustable rate, terms usually 15 to 30 years, for primary homes, second homes, and investment properties.
How it works
You qualify on credit, income, and down payment. Down payments start around 3–5% for a primary home (20% removes mortgage insurance). Your income is documented with W-2s, paystubs, or tax returns, and the loan follows guidelines set by Fannie Mae and Freddie Mac.
Who it fits
Borrowers with steady documented income and fair-to-strong credit. If you're salaried, have a reasonable debt load, and you're buying or refinancing a home, conventional is usually the first quote worth getting.
What you'll need
Recent paystubs and W-2s (or two years of tax returns if self-employed), bank statements for the down payment, and a credit check. Pre-approval typically takes a day.
Good to know
If your income is hard to document on paper — common for business owners — don't force a conventional loan. A Non-QM program may approve the same deal with less friction. Same desk, different paperwork.
Two minutes with a licensed advisor beats two hours of reading. NMLS #1511274 · Licensed in California · Florida · Texas
Talk to the DeskGeneral education, not advice for your specific situation. Every file is different — talk to a licensed professional before making decisions.