Conventional Mortgage
What Does Conventional Mortgage Mean?
A conventional mortgage is a type of loan that is not backed or insured by any government entity, such as the Veterans Administration or the Federal Housing Administration. Many holders of conventional mortgage loans purchase mortgage insurance to protect against potential losses from defaults.
Insuranceopedia Explains Conventional Mortgage
Conventional mortgages offer an alternative to those backed by government agencies. By providing financial backing, agencies like the Federal Housing Administration and the Veterans Administration serve as an insurance measure against default.
Mortgages can represent significant sums, ranging from hundreds of thousands to even millions of dollars. As a result, there are various mortgage options available, each with different types of insurance measures to protect against losses from defaults.
