Many conventional loans conform to government-set loan limits as well as income and credit score minimums. Conventional loans often cost less than government-backed mortgages such as FHA loans, but qualification requirements are more difficult to satisfy.
Are conventional loans better than FHA loans?
However, in general, conventional loans have stricter credit requirements than government-backed loans like Federal Housing Administration (FHA) loans. As with any type of mortgage loan, you’ll need to meet certain qualification requirements if you want to buy a home with a conventional loan.
What is a conventional loan?
Here's an explanation for Conventional loans are mortgages that aren't guaranteed or insured by the government — they are available through and backed by private lenders. Conforming conventional loans (the most common conventional loan type) have guidelines set by the Federal Housing Finance Agency (FHFA).
