A conventional loan refers to a mortgage that is not insured or guaranteed by any government agency, such as the Federal Housing Administration (FHA), the Department of Veterans Affairs (VA), or the U.S. Department of Agriculture (USDA). Instead, conventional loans are originated and funded by private lenders, including banks, credit unions, and mortgage companies. These loans typically require higher credit scores and down payments compared to government-insured loans. Conventional loans offer a variety of terms and options, including fixed-rate and adjustable-rate mortgages, making them a popular choice for borrowers who have strong credit histories and financial stability.