A conventional loan is a mortgage that isn’t backed by the government, offering flexibility and competitive interest rates for qualified borrowers. These loans typically require a higher credit score and down payment than FHA loans but come with fewer restrictions and no upfront mortgage insurance premiums. Conventional loans are ideal for borrowers with stable income, good credit, and the ability to invest in equity early. They can be used for primary homes, second homes, or investment properties, providing a versatile financing option for a wide range of buyers.