What is the definition of a conventional mortgage?

A conventional mortgage (also known as a non-FHA loan) is a type of home loan that is not insured or guaranteed by the federal government. Instead, it's backed by a private lender—such as Better Mortgage. Conventional loans are the most common type of home loan, making up nearly three quarters of home loans. If you apply for a conventional loan with less than a 20% down payment, you'll be required to pay for private mortgage insurance (PMI).