Conventional

Conventional loans are commonly used to construct, acquire or refinance properties. Conventional loans have low-interest rates compared to other loan products but they are usually full recourse to the borrower and only offer moderate amounts of leverage. Loans are typically provided by a bank, credit union, or another type of savings institution. Conventional loans are good for inexperienced borrowers and small balance loans. However, lenders generally require the borrower to have cash in the deal and maintain strong liquidity post loan closing.