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What Are Conventional Home Loans?

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Are you considering a conventional home loan? Or looking to be informed about them?

If so, you’ve come to the right place.

In this Q&A I’ll go over what conventional home loans are, the various types, and a way to see if you qualify.

So, what are conventional home loans?

A conventional home loan also known as a conventional mortgage refers to a loan that is not guaranteed or insured by any government agency, including the Federal Housing Administration (FHA) the Farmers Home Administration (FmHA) and the Department of Veterans Affairs (VA).

In layman’s terms, mortgages that aren’t guaranteed or not insured by these agencies are called conventional home loans.

Are there more than one type of conventional home loans?


There are few types of conventional home loans, conforming, non-conforming, jumbo loans, portfolio loans and sub-prime loans.

A conforming loan is a mortgage loan that conforms to the guidelines set by the two government sponsored enterprises (GSEs) Fannie Mae and Freddie Mac.

These enterprises acquire mortgages from lenders and sell them to investors to help make mortgages readily obtainable.

On the flip side mortgage loans that don’t adhere to these GSEs are non-conforming, also known as “non-prime.”

Jumbo loans are non-conforming conventional loans that are larger than loan limits set by GSEs and are also known as jumbo mortgages.

And portfolio loans are loans held by mortgage lenders on their own books meaning they can set their own guidelines for these loans.

It’s important to be aware that portfolio loans can often have benefits others don’t by allowing borrowers to use things like stocks and bonds as collateral.

And last but not least, sub-prime loans.

Sub-prime loans are conventional loans designed for people that typically have low or bad credit.

These loans are regulated by special laws by the government even though they are not backed due to higher interest rates and fees.

Now that I know what a Conventional loan is how do I know if I qualify?

Qualifications can vary by lender and conventional loan type. Although if your FICO score is 580 or above you can apply today for a personal loan offer up to $25,000 toward your home.

To apply online today for an instant decision just click here now to check your offer.

The information provided in this article does not constitute financial advice and is provided for educational purposes only without any express or implied warranty of any kind. This article is not intended as legal, tax, investment, or any other advice, and Mariner Finance does not offer credit repair services. Consider talking with an appropriate qualified professional for specific advice. Blog posts are for informational purposes only.