Conventional loans are mortgage loans offered by non-government-sponsored lenders. Great rates and buyer flexibility make conventional loans the most popular mortgage on the market today with up $726,200 conforming loan amount. A conventional or conforming mortgage adheres to the guidelines set by Fannie Mae and Freddie Mac. It may have either a fixed or adjustable rate.
While many think that a 20% down payment is required for all conventional loans, many lenders now offer low down payment options.