Home loan guide
A conventional mortgage is a home loan that is not insured or guaranteed by a federal government program. Its structure can fit different purchase or refinance situations when current lender and program requirements are met.
Last reviewed: September 30, 2026
Conventional financing sits outside FHA, VA, and USDA government-insurance or guaranty programs. Some conventional loans conform to standards associated with Fannie Mae and Freddie Mac, while others do not.
The distinction affects how a loan may be evaluated and sold, but it does not replace a lender’s review of income, assets, credit, debts, occupancy, and property details.
Conventional financing may be considered for a primary home and, where program rules permit, other eligible occupancy or property situations. The exact use must be confirmed for the transaction.
A purchase and a refinance have different goals, documents, costs, and timelines. Ask which current conventional path matches the loan purpose rather than assuming one set of terms applies.
Down-payment choices vary by program and borrower circumstances; there is no single minimum presented here as an InterWest rule. A smaller down payment can affect mortgage-insurance requirements and the overall cost structure.
Compare cash needed at closing, monthly mortgage insurance where applicable, and the conditions under which insurance may later change or end.
Credit history, income, assets, debts, employment, property value, occupancy, and documentation may all affect underwriting. Current standards and loan limits can change.
A conversation with our team helps clarify the difference between learning about loan programs and an official approval, which is based on verified income and documents.
Ask whether the loan is conforming or non-conforming, which occupancy and property rules apply, whether mortgage insurance is expected, and how closing costs compare across options.
Also ask how a change in down payment, term, or loan purpose could alter the complete cost picture.
InterWest connects statewide mortgage education with city and regional preparation. Location context can shape the property search, but qualification remains specific to the borrower and property.
Get in touch with our Idaho Falls office, or explore our statewide and city guides for information on local housing markets.
Compare carefully
The right questions depend on the borrower, property, occupancy, loan purpose, and current program rules.
| Question | Conventional | FHA |
|---|---|---|
| Program structure | Not government-insured | FHA-insured |
| Eligibility focus | Financial and property qualification | Borrower, occupancy, and property review |
| Upfront planning | Down payment and possible mortgage insurance | Down payment and mortgage insurance |
| Property context | Eligible property and occupancy type | Primary residence and FHA property standards |
This comparison is educational, not a qualification decision or personal financial recommendation.
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Use selected location and borrower-intent guides to prepare useful questions.
Start with statewide guidance.
Connect with our Idaho Falls office.
Prepare for a Boise financing discussion.
Review our homebuying guide for the Treasure Valley.
Learn about the home purchase process.
Understand early lender review.
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Tools and references related to this topic.
Official references
Program information can change. These official resources support the specific contexts described below; confirm current rules before relying on them.
Defines conventional financing and explains conforming and non-conforming categories.
Common questions
No. CFPB defines a conventional mortgage as one not insured or guaranteed by a federal government program.
No. Down-payment requirements vary with the program and transaction. A mortgage professional can explain current options and possible mortgage insurance.
Conventional financing may be available for eligible refinance purposes, subject to current program, borrower, and property requirements.
A useful next step
Discuss current conventional options and the complete cost structure for your circumstances.
