Conventional loans are the most common type of real estate loan. These types of loans are not backed by government agencies, and investors need good credit, steady income, and a down payment of at least 20% of the property value to qualify for one. The terms of this loan type are usually 15, 20, or 30 years. Conventional loans usually offer lower interest rates than other types of loans, but they may be more difficult to obtain due to their strict criteria. The loan amount is based on the property's appraised value and traditionally has lower interest rates.