A conventional loan is a type of mortgage that is not backed by the government. These loans are typically offered by private lenders, such as banks and credit unions. They usually require a higher credit score and a larger down payment compared to government-backed loans. Because of this, they are often seen as a good option for borrowers with strong financial profiles. One of the main benefits of a conventional loan is the flexibility it offers. Borrowers can choose between fixed or adjustable interest rates, and they can often avoid paying private mortgage insurance (PMI) if they make a down payment of 20% or more. This makes conventional loans an attractive choice for many homebuyers.