Conventional mortgages are your typical Fannie/Freddie loans. These types of loans adhere to the guidelines of the government sponsored entities. Downpayment starts as low as 3% on conventional loans. Loans of this sort typically require credit in the mid 600's on the low end, and there is private mortgage insurance required for a downpayment of less than 20%, however the mortgage insurance drops automatically once the borrower has 78% equity, and typically drops by request under 80% equity. One benefit of conventional financing is that the appraisal requirements are usually less stringent than that of FHA and VA loans, thus making offers with conventional financing more likely to be accepted by the seller of the home.