What is the Definition of a Conventional Loan?

A conventional mortgage loan is a home loan that’s not backed by the US government. Conventional loans are typically available through private lenders, banks, and credit unions. Some conventional loans are guaranteed by Fannie Mae and Freddie Mac. Jumbo loans, which are conventional loans that are not guaranteed by Fannie Mae and Freddie Mac, are guaranteed through private lenders.

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More resources

• Conventional Loans: Pros, cons, and tips for qualifying
• Jumbo vs. conforming loans: understanding the differences
• When a 3%, 5%, or 10% conventional loan down payment is smarter