Conventional loans are often simply called “mortgages.” Private lenders offer them without the backing of a government agency. You can buy a home, refinance a home, and get cash from your home's equity with a Conventional loan.

When you have good credit and finances, Conventional loans can offer you competitive interest rates and favorable terms. You can often borrow more money to finance more expensive homes. You can finance more kinds of houses with Conventional loans, compared to other mortgages.

FILTERS LOANS

Conventional

FHA

VA

USDA

You can buy and refinance more kinds of homes with Conventional loans compared to mortgages like FHA loans. For example, you can only use FHA loans to finance primary homes, while you can use Conventional loans to finance primary homes, vacation homes, rental properties, or investment properties.

The limits on the amount of money you can borrow with Conventional loans are higher than the limits for FHA loans in many parts of the country. This means you may be able to buy a more expensive home with a Conventional loan compared to an FHA loan. Learn more about the differences between FHA and Conventional loans.

Conventional loans don't have upfront mortgage insurance fees or premiums. If you make at least a 20% down payment, Conventional loans don't require mortgage insurance. You can also have more than one Conventional loan at a time, while you are generally limited to having one mortgage that's backed by a government agency at a time.

• Applying for a Conventional loan. There are fewer requirements and restrictions for Conventional loans compared to government-backed loans, but you will still have to apply and meet a lender's credit, financial, and income requirements. These include credit score, debt-to-income ratio requirements, loan-to-value ratio requirements, and providing income and financial documents with your application. Learn more about applying for a mortgage.
• Down payment. You will typically need to pay at least a 5% down payment with Conventional loans. If you make a down payment of 20% or more, you won't have to pay for private mortgage insurance. Learn more about how to decide the size of your down payment.
• Private mortgage insurance. If you have a Conventional loan and make a down payment that's less than 20%, you will have to pay private mortgage insurance (PMI). Private mortgage insurance protects lenders against potential losses if a borrower defaults on a loan. Once the equity in your home reaches 20%, you can request your PMI be canceled.
• Loan limits. Conventional loans offered by Freedom Mortgage and other lenders are often called “conforming loans” because they have limits on the amount of money you can borrow. In 2025, you can borrow up to $806,500 with a Conventional conforming loan in most of the United States. Learn more about Conventional loan limits.
• Paying closing costs. Conventional loans come with closing costs that can include appraisal fees, property insurance, mortgage discount points, and property taxes. Closing costs typically cost between 2% and 5% of the price of the home. Learn more about closing costs.

The Conventional rate we may be able to offer is personal to you. Your interest rate is affected by the type of loan you want, your credit score, your income and finances, as well as the current mortgage market environment. Freedom Mortgage may be able to offer you a rate that is lower—or higher—than the rate you see advertised by other lenders. Ask us today what Conventional loan rate we can offer you. Call a Loan Advisor at 877-220-5533.