A conventional loan program is a loan that is not guaranteed or insured by the federal government, as aVA Loan, FHA loan, or aRHS loanare. Before government loans came into play, they were the only mortgage loans available. Even though a conventional loan is not guaranteed or insured by the government, many follow all the guidelines that are put forth together Fannie Mae and Freddie Mac.
Conventional loans are basically in two different categories "conforming loans" or “non conforming loans” options. Conforming loans follow the guidelines that are set by Mae and Freddie Mac, where non conforming loan programs follow their own.
Conventional loans can be fixed rate, adjustable rate, balloon mortgages, or hybrid loans. If a loan is not issued by the government it is considered a conventional loan.
