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.
