Conventional loans are mortgages which are not FHA or VA loans.  There are three main types of conventional loan: conforming loans, jumbo loans, and non-conforming loans.

Conforming loans must meet the guidelines of Fannie Mae (FNMA) and Freddie Mac (FHLMC), theses are the two largest home loan purchasers.  Conventional loans have loan limits which are set  by Fannie Mae and Freddie Mac, these limits do change periodically.  Currently the conforming loan limit is $333,700 for a single-family home.  For loans that may exceed conventional loan limits, Non-Conforming or Jumbo loans exist.  All conventional loans with less than a 20% down payment is required to have PMI (Private Mortgage Insurance).

Jumbo loans are mortgages with loan amounts exceeding the guidelines of Fannie Mae and Freddie Mac. Learn More on Jumbo Loans

Balloon Mortgages are short term mortgages which are available with as little as 5% down and have a term of 5 to 7 years. Click to Learn More about Balloon Mortgages

Conventional Loan Types