A conventional mortgage is a loan that is neither insured nor guaranteed by the federal government. It adheres to the guidelines set in place by Fannie Mae and Freddie Mac, and is able to have either a fixed or adjustable rate mortgage. Limits vary depending on state regulations.


Loans vary depending on particular situations, however if you have a high credit score and are able to make the down payment requirements (anywhere from 5 to 20%), and are looking for a larger loan, then a conventional loan would likely be a good choice for you.  Conventional loans come with more flexibility and don’t require mortgage insurance if the loan to value is less than 80%. In many instances, conventional loans come with better interest rates, to boot.