Buying a home in 2026? Here’s what a conventional loan is, and how to qualify

Conventional loans are the most common home loans in the U.S. In 2023, more than 77% of all home loans were conventional. A There are two types: conforming and non-conforming. Types of conventional loansNon-conforming loans do not follow Fannie Mae or Freddie Mac rules. Lenders have more freedom with these loans. They may allow bigger loans, special properties, or flexible credit rules. A conventional loan is usually best for people with steady income, good credit, and normal debt. These loans can also wor ...