Conventional Loans

Conventional loans are loans that are not insured or guaranteed by a government agency (see FHA and VA for information on government loans). They can be conforming or non-conforming loans. Most of the conventional loans that have been made in the last several years have three basic attributes in common: 1) They have been for long terms, 2) They have been loans with fixed interest rates, and 3) they have been fully amortized (see Fixed Rate Loans and Adjustable Rate Loans.

TIP: If you do fall behind on your monthly payments, contact your creditors and explain the situation to them, they may be willing to work out a payment plan for you. Consider adding a note to your credit report describing your hardship. Contact the credit reporting agencies to do this.