Conventional loans have smaller down payment options (as little as 3%) for a fixed-rate term or 10% for an adjustable-rate. With fewer restrictions than FHA or VA loans, conventional loans can take a shorter time to process. These loans adhere to guidelines set by Fannie Mae and Freddie Mac.
Conventional loans can also be either adjustable or fixed rate terms. By choosing a fixed rate mortgage, you will always know your interest rate throughout the lifespan of your loan. By borrowing an adjustable rate mortgage, you are given a starting rate that will adjust following a fixed period of time in your loan’s lifespan.
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