Conventional loans are any type of mortgage loan that is not offered or insured by a government entity as part of a specific program. Private lenders, such as any big or small bank, can set the loan terms, including eligibility or qualification criteria, interest rates, down payment thresholds, payment schedule and more.
Aside from VA loans, for which only US veterans are eligible, conventional loans are usually the best types of products available, as in the vast majority of cases, borrowers avoid additional costs and monthly fees and benefit by taking advantage of private lenders or banks competing with one another nationwide.