Conventional loans offer more flexible repayment terms in comparison to government-backed loans. Conventional Loans are offered in 30-25-20-15-10 year repayment plans. Whereas, government backed loans are typically offered in just 30 or 15 year repayment terms. In addition, conventional financing requires good credit and a healthy debt-to-income load.(typically total debt ratios are limited to 45%) However, If you lack this criteria, which is set by Fannie Mae, or Freddie Mac , you can always turn to Government based financing backed by the Federal Housing Administration or the Department of Veterans Affairs, provided you are an eligible veteran. Typically these government sponsored loans offer more options for borrowers with a Higher debt to income ratio or lower credit scores. In addition, You can also opt for a conventional loan with PMI. You typically pay the annual PMI premium in monthly installments, along with the mortgage payment, or you can also opt for a Lender-Paid Pmi loan.