A conventional loan is a mortgage that is not backed by a government agency. conventional loans are often also called "conforming" loans because they follow lending rules set by the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac).Fha Loan Vs Conforming Loan A 15-year FHA loan with 22% down payment gets you out of paying PMI, which can actually make the FHA loan cheaper than a conventional. When we bought our house in 2012, the best FHA loan was a 2.75% 15-year fixed (no PMI with 22% down), but the best conventional was over 3% for a 15-year fixed.
FHA mortgage or conventional mortgage: Which one is best for you? Make sure you understand how these two types of mortgages differ..
A conventional loan is a mortgage that is not backed or insured by the government, including all Federal Housing Administration, Department of Veterans Affairs, or Department of Agriculture loan.