What is a conventional mortgage?
“Conventional mortgage” is a catchall term for any mortgage that is not some other type of mortgage. If your loan is not insured by FHA or guaranteed by USDA or VA, it is likely a conventional loan. The vast majority of conventional loans are sold to Fannie Mae or Freddie Mac and are called “conventional conforming” loans. Loans that, in some way, do not fit into Fannie Mae’s or Freddie Mac’s underwriting guidelines are (rather unimaginatively) called “non-conforming” loans. Loans that exceed Fannie Mae and Freddie Mac’s loan limits are called (rather goofily) “jumbo” loans.
In addition to our glossary, we have a library of downloadable PDFs that cover all aspects of the mortgage process, from basic fundamentals to some of the more complex concepts.
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