Conventional Loan
Updated 04/30/2024

What Is a Conventional Loan?

A conventional loan is one that is not guaranteed by a government entity. Conventional loans are classified as “conforming” or “non-conforming.” Conforming conventional loans adhere to the lending guidelines established by the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). Some lenders, however, may allow some wiggle room with non-conforming conventional loans.

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