What is a Conventional Loan?
A conventional loan is a type of mortgage loan that is not insured or guaranteed by any government entity such as FHA, VA, and USDA. Conventional loans are also known as conforming loans because they “conform” to Fannie Mae and Freddie Mac standards. Conventional loans are much more common than government-backed financing and are used for about 3/4 of all new home sales, making them the most popular home loan option.
Conventional loans can be used to finance or refinance a primary residence, second home, vacation property or investment property. This is in contrast to government-backed loan programs which can only be used to finance a primary residence. Single-family homes, duplexes, 2-4 unit properties, condominiums, and townhouses are all eligible for a conventional loan.
If your shopping for a conventional loan, we’d love to help; we offer conventional home loans in Virginia including Blacksburg, Marion, Abingdon, Roanoke, Wytheville, Bristol, and the surrounding areas.