1. a mortgage loan other than one guaranteed by the Veterans Administration or insured by the federal housing administration .
See VA LOAN, FHA LOAN .
Example: Abel applies for a conventional loan from his savings and loan association . If Abel wants to borrow more than 80% of the value of the mortgaged property, he must buy private mortgage insurance.
2. a fixed-rate, fixed-term mortgage loan.
Example: alternative mortgage instruments, by commonly used definition, are not conventional loans.
Example: A conventional mortgage loan requires a fixed principal and interest payment over its term.
| Conventional Home, Controls | |
| Conversion, Converter |
Dictionary of Real Estate Terms. Copyright © 2008 by Barron's Educational Series, Inc. All rights reserved.
