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What Is A Conventional Loan?

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What is a Conventional Loan?

A conventional loan is a loan or mortgage where the lender assumes all the risk on the loan as compared to a government-backed loan where a lender, the government guarantees the loan. A conventional loan is the most popular loan type in the marketplace today and every mortgage company currently offers a conventional mortgage.

Key benefits of a Conventional Loan

More competition for a conventional loan provides for a more competitive rate

Conventional loans aren’t limited by borrower type, location or loan amount


Conventional mortgage loans are offered in both adjustable and fixed rate loans.


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