Non-government-insured mortgages
Conventional is a broad category, not one set of terms
A conventional mortgage is not insured or guaranteed by FHA, VA, or USDA. Some conventional loans follow the eligibility and documentation standards used for sale to Fannie Mae or Freddie Mac; other conventional products can use different investor rules.
Direct answer
Conventional loans can finance purchases and refinances across more than one occupancy and property scenario, subject to product and lender rules. Qualification considers documented income, assets, debts, credit, occupancy, property, transaction, and loan structure. Down payment or equity can affect pricing and mortgage insurance, but there is no single conventional rule that applies to every borrower and product.
Questions that shape a conventional review
| Area | Questions | What needs verification |
|---|---|---|
| Loan structure | Fixed or adjustable rate? Loan term? Purchase, limited cash-out, or cash-out? | Requested product, current pricing, purpose definitions, and complete terms. |
| Occupancy and property | Primary residence, second home, or investment property? One unit or more? Condominium, planned-unit development, or another type? | Occupancy intent, property eligibility, appraisal, title, insurance, and any project review. |
| Borrower profile | How are income, debts, funds, reserves, and credit documented? | Current records and the applicable automated or manual underwriting findings. |
| Equity and insurance | Does the transaction require private mortgage insurance, and if so, what coverage and payment structure applies? | Loan-to-value calculation, property value, product, insurer, borrower profile, and actual disclosure. |
Mortgage insurance is scenario-specific
Private mortgage insurance may be required on some conventional loans and absent on others. It can be structured in different ways, and its cost or cancellation rules should be confirmed from the actual proposal and governing documents. Do not infer a monthly mortgage-insurance charge solely from a broad down-payment percentage.
Conforming does not mean automatically approved
A conforming loan generally follows standards designed for acquisition by Fannie Mae or Freddie Mac and remains subject to applicable loan limits. Meeting one limit does not establish eligibility. Underwriting, property, occupancy, documentation, and lender requirements still apply, and loans outside conforming standards may have different features and risks.
Neutral alternative check
A conventional proposal can be compared with an FHA, VA, or USDA option only when the borrower and property can be considered for that program. Compare full cash to close, recurring costs, mortgage insurance or program fees, term, flexibility, and time horizon. Read the loan-program overview before comparing a single feature.
Official sources checked
- Consumer Financial Protection Bureau: different kinds of loans
- Fannie Mae Selling Guide: conventional-mortgage definition
- Freddie Mac Single-Family: mortgage products
Sources checked July 14, 2026. Current investor, insurer, lender, and transaction documents control the exact requirements and terms.