Unlike other loans, these are not backed up by government funds. Typically fixed in terms and rate, with a pay off period ranging from 10 to 30 years. Down payments range from 10% to as high as 20% and can offer lower interest rates. 

A conventional loan is a type of mortgage that isn’t backed by a government agency, such as the Department of Veterans Affairs. Conventional mortgages often meet the down payment and income requirements set by Fannie Mae and Freddie Mac, and conform to the loan limits set by the Federal Housing Finance Administration, or FHFA.

You will generally need a credit score of at least 620 to qualify for a conventional loan, though a score that is above 740 will help you get the best rate. Depending on your financial status and the amount you are borrowing, you may be able to make a down payment that is as low as 3% with a conventional loan.

Conventional loans can have better interest rates than non-conventional loans and can be a great option for those with a 10% down payment. However, even the borrower does not have a 10% down payment, it is still possible to get a mortgage. By putting less down payment and accepting a higher interest rate, the borrower can still get financing through a non-conventional loan.