What is a conventional mortgage?

A conventional mortgage is characterized as a type of mortgage that is not insured or guaranteed by the government. This definition highlights that conventional loans are typically offered by private lenders and do not involve government backing, distinguishing them from government-insured products such as FHA or VA loans.

The absence of government insurance often means that conventional mortgages can have stricter qualification criteria, typically involving a higher credit score and a larger down payment to mitigate the lender's risk. Because they are not government-backed, conventional mortgages may offer more flexibility in terms of loan amounts and terms compared to insured loans.

In contrast, options that suggest government involvement, such as loans that are guaranteed by the government or specific programs limited to first-time buyers, do not accurately describe conventional mortgages. The focus on being "not insured or guaranteed by the government" is what sets conventional mortgages apart from these other types of financing options.