Conventional loans, as the name suggests, are normal bank loans backed by major mortgage note buyers like Fannie Mae or Freddie Mac. Most conventional loans will feature 15 or 30 year terms, and have a fixed interest rate depending on several qualifiers, like current market value and credit score. The qualifiers are turned into a ‘points’ system, meaning the fewer points your loan has, the lower your fixed interest will be. Keep in mind that although every conforming loan is based off conventional factors, the opposite isn’t entirely the case. Down payment requirements usually range from 5% to 20%, which actually could drop lower depending on Federal programs currently being offered to offset first-time home buyers’ initial upfront costs. Final prices do not included closing fees.