Conventional loans are mortgage loans offered by non-government-sponsored lenders. With great rates and buyer flexibility, conventional loans are the most popular mortgage option on the market today, with conforming loan amounts of up to $806,500. A conventional or conforming mortgage adheres to the guidelines set by Fannie Mae and Freddie Mac and may have either a fixed or adjustable rate.

While many people think that a 20% down payment is required for all conventional loans, many lenders now offer low down payment options. If you have not owned a home in the past 3 years, a down payment of just 3% may be available.