Exterior of home with brick and grey siding.

What is a Conventional Loan?

Conventional Loans are the most common mortgage type you’ll come across and often the usual starting point for many when shopping for a mortgage loan, because they’re exactly what they sound like: conventional. They require a minimum down payment of 5%, for a maximum loan amount of $548,250. Also, seller concession is up to 3-9% of the sales price, while the Private Mortgage Insurance (PMI) required is over 80% Loan-to-Value (LTV), or the amount of the mortgage compared with the value of the property. While all of that may sound convoluted, it is fairly, well, conventional.