Organize my sale
Keighbor / Glossary / Financing

Conventional loan

A mortgage not insured or guaranteed by the government. Most conventional loans follow Fannie Mae and Freddie Mac guidelines. The main non-government option for most buyers.

Financing · Updated September 2026

Already on the market?

Your Room opens on showings and offers, with everything before the listing already ticked.

Organize my sale

Free to set up. Pay once when you list: $89 or $189. 7-day refund.

See how it works

Where this comes up in a sale, and what follows

The steps of a sale, in order. Each one has its own free guide.

  1. Review offers and negotiate (comes before)Compare offer terms · Verify buyer financing
  2. Go under contractThis word comes up hereSign the purchase agreement · Confirm earnest money is deposited
  3. Buyer's inspectionCoordinate access for the inspector · Give the inspector clear access
  4. Title workOpen title with your closing team · Review the title commitment

Your Room keeps this list for your own sale, with your dates on it.

Organize my sale

Free to set up. Pay once when you list: $89 or $189. 7-day refund.

Part 1 of 4

Why a seller cares

A conventional buyer is the most common kind, and their loan carries the fewest property rules. The appraisal still matters, but the inspector is not applying an FHA checklist to your peeling paint.

Part 2 of 4

A simple example

Two financed offers at $300,000: one conventional with 10% down, one FHA with 3.5% down. Both need an appraisal; only one brings extra property standards.

Conventional loan: a simple example
The buyer's loanWhat it asks of your home
ConventionalAn appraisal at or above the price
FHA or VAAn appraisal plus the program's minimum property standards
CashOnly whatever inspection the buyer chooses

Conventional financing is the middle of the road: a real loan, with the lightest touch on the house.

Part 3 of 4

What people get wrong

That conventional means the bank owns the loan. Most are sold to Fannie Mae or Freddie Mac; conventional means not government-insured.

Part 4 of 4 · where to read next

Where it appears in the sale

Going under contractOn the market · uses this word in the guide itselfVantageScore 4.0 and your buyer's mortgage: what changedOn the blog · September 30, 2026On the marketOn the market · the stretch of the sale this word belongs to

What a definition is, and what it isn't

Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.

Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish

Was this clear?

In your Room, this word explains itself where it appears.

Your Room defines conventional loan in the step you meet it in, beside the document or the date it belongs to. Free to set up, with an agent or on your own.

Organize my sale

Free to set up. Pay once when you list: $89 or $189. 7-day refund.

Next, tell us your name, address, and where you are in the sale. It takes about two minutes and does not list your home or contact anyone.

Every word, defined