A conventional loan is not issued or insured by a federal agency and is usually a 30-year fixed rate term that usually requires a 10 - 25% down payment and often allows for a better interest rate.
- Simply a loan that is not issued or insured by a federal agency
- Usually a 30-year fixed rate term
- Typically requires at least a 10 - 25% down payment, but can go as low as 3% for first-time home buyers.
- Requiring larger down payments, conventional loans may offer better interest rates than non-conventional loans
- Loans with less than a 20% down payment may require private mortgage insurance (PMI)
Video: Colonial's New Online Mortgage Application