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A conventional loan is different from other types of home loans because it is not insured or guaranteed by a government agency like the FHA, VA, or USDA. Instead, it’s backed by private lenders and may be sold to government-sponsored entities like Fannie Mae or Freddie Mac if it meets certain guidelines (making it a "conforming" loan).

Conventional loans typically require higher credit scores, a larger down payment, and have stricter income and debt requirements compared to government-backed loans. However, they offer more flexibility in terms, fewer fees in the long run, and no upfront mortgage insurance premium.

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