Conventional Loans

A conventional loan is any mortgage which is not guaranteed or insured by the federal government (Veterans Administration (VA) or the Federal Housing Administration(FHA)).

Conventional loans may be "conforming" and "non-conforming". Conforming loans follow the terms and conditions set by Fannie Mae and Freddie Mac. Nonconforming loans don't meet Fannie Mae or Freddie Mac qualifications, but are also considered conventional.