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A Conventional loan is not a government insured loan program. A Conventional loan can offer a down payment with as little as 3%. If you have less than a 20% down payment, a Conventional loan will require private mortgage insurance or PMI which will help insure the lender against default. Credit and income requirements on a Conventional loan are typically stricter than a government loan (i.e. FHA, VA or USDA).

There are two types of Conventional loans: Conforming and Non-conforming. A Conforming loan means the loan meets guidelines set by Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). Non-conforming loans can include jumbo loans, portfolio loans or any other loan that does not meet Fannie Mae or Freddie Mac guidelines. Pen Air offers both conforming and non-conforming loans.

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