A conventional loan is a type of mortgage that is not insured or guaranteed by a government agency, such as the Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA). Instead, conventional loans are offered by private lenders, such as banks, credit unions, or mortgage companies, and they often conform to the guidelines set by government-sponsored enterprises like Fannie Mae and Freddie Mac. Conventional financing is ideal for borrowers with strong credit and stable income, offering competitive rates and flexible term options for a variety of property types.