CONVENTIONAL

A conventional mortgage loan is a type of mortgage that is not insured or guaranteed by the government and is instead offered by private lenders such as banks, mortgage companies, and credit unions. It is called "conventional" because it conforms to the standards set by Freddie Mac and Fannie Mae, two government-sponsored enterprises that buy and sell a large portion of the mortgage loans in the U.S.

Conventional mortgage loans are typically offered with either a fixed or adjustable interest rate and a set term, typically ranging from 10 to 30 years. The loan amount is based on the value of the property, the borrower's credit score and income, and the amount of the down payment. The lender will need to verify employment (income), credit and assets. If the borrower is self-employed income is verified with tax returns. Conventional loans are generally the most commonly used loan program. JumboA jumbo mortgage loan is a type of mortgage loan that exceeds the maximum conforming loan limits set by the Federal Housing Finance Agency (FHFA). Conforming loan limits are the maximum loan amounts that Freddie Mac and Fannie Mae, two government-sponsored enterprises, can purchase from lenders. When a loan amount exceeds the conforming loan limit, it becomes a jumbo loan.