What is a conventional loan?

Here's an explanation for Conventional loans are mortgages that aren't guaranteed or insured by the government — they are available through and backed by private lenders. Conforming conventional loans (the most common conventional loan type) have guidelines set by the Federal Housing Finance Agency (FHFA).

What is a conventional mortgage?

A conventional loan is the most popular type of mortgage in the United States. In fact, conventional loans accounted for roughly 80% of the home loans that closed in August 2021, according to Ellie Mae. Backed by private lenders rather than the federal government, conventional loans can be used to buy or refinance homes.

What is a conforming conventional loan?

Conforming conventional loans (the most common conventional loan type) have guidelines set by the Federal Housing Finance Agency (FHFA). Conventional loans are available as fixed-rate, adjustable-rate, conforming, jumbo and non-qualifying mortgages.