Conventional Mortgage Loan

Conventional Mortgage Loan

A mortgage loan backed by private lenders. Conforming conventional loans follow lending rules set by the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). Non-conforming conventional loans fall outside the guidelines, so they cannot be sold to Fannie Mae or Freddie Mac. Though not insured by any government program, loans with a down payment less than 20% of the purchase price may require private mortgage insurance.