Conventional Loans: What You Need To Know

The most common type of home loan is a conventional loan. Borrowers with strong credit histories and the funds for a substantial down payment will benefit from these loans. Unlike conventional loans, traditional loans do not require mortgage insurance, while still offering borrowers the option of either fixed or adjustable rates.

The typical conventional loan term is 15, 20, or 30 years. Good credit is required to qualify. You need a minimum score of 620 to be approved, but a score of 740 will help you secure the best rate.