A conventional loan is a type of mortgage loan that is not insured or guaranteed by a government agency like the Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA).

Here are some key features of conventional loans:

1. Down payment: Conventional loans typically require a higher down payment compared to FHA loans. The specific down payment requirement can vary depending on factors such as the borrower's creditworthiness, loan amount, and the lender's guidelines. Generally, a down payment of at least 5% to 20% of the home's purchase price is required, although it's possible to find lenders that offer lower down payment options.

2. Mortgage insurance: If the borrower makes a down payment of less than 20%, private mortgage insurance (PMI) is usually required. PMI protects the lender in case of default. Unlike FHA loans, where mortgage insurance is mandatory, conventional loan borrowers have the opportunity to cancel PMI once they have sufficient equity in the property (typically when the loan-to-value ratio reaches 80% or lower).

3. Credit score: Conventional loans typically have stricter credit score requirements compared to FHA loans. While specific requirements can vary among lenders, a good credit score is generally required to qualify for a conventional loan. A higher credit score can also help secure better interest rates and loan terms.

4. Loan limits: Conventional loans have higher loan limits compared to FHA loans, which means they can be used to finance higher-priced properties. These limits are determined by the Federal Housing Finance Agency (FHFA) and vary depending on the location of the property.

5. Property requirements: Conventional loans have property standards that must be met to ensure the property's condition and marketability. However, the standards are typically less stringent compared to FHA loans.

Conventional loans offer flexibility and a wide range of options, including fixed-rate and adjustable-rate mortgages. Interest rates for conventional loans can vary depending on market conditions, the borrower's creditworthiness, and other factors. It's important to shop around and compare loan offers from different lenders to find the best terms and rates for your specific financial situation and goals.