Conventional mortgage loans usually provide the lowest of mortgage rates; thus lowest monthly payments. Good credit; and verification of sufficient income are required.

A conventional loan is any mortgage loan that is not insured or guaranteed by the government (such as under Federal Housing Administration, Department of Veterans Affairs, or Department of Agriculture loan programs).

The two most common sources for conventional loans are Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). These entities are not government agencies. However, they are both government-backed and own most of the conventional mortgages in the U.S.A..