A conventional loan is a mortgage loan that is not insured or guaranteed by any government program (such as Fannie Mae or Freddie Mac). It is the most common type of mortgage loan. Unlike non-conventional (government-backed) loans, for which interest rates are set by statute, each mortgage lender, bank, or mortgage broker will offer different rates, terms, and fees for conventional loans, so it’s best to get a good faith estimate from a number of different lenders to determine the best loan.
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