This type of loan is available to most types of borrowers for the purchase or refinance of a single family home whether or not the home is occupied by the owner. This type of loan requires either 20% minimum down payment or equity.
If the equity is not sufficient a borrower can still get a conventional loan but it will require Mortgage Insurance to be paid monthly. There is not an upfront mortgage insurance charge or funding fee as in an FHA or VA loan respectively. These loans have maximum loan amounts available but varies depending on the County, minimum FICO scores and strict rules for income verification and debt to income ratios.
A borrower with a previous foreclosure, short sale and/or bankruptcy can qualify for this type of loan after a set waiting period has elapsed. A borrower can have multiple conventional loans including second homes and rental properties with limitations after 10. Financing may be fixed or variable rate loans.