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What is a Conventional Loan

A mortgage loan not insured by any government program, conventional loans are the most common type of mortgage. They differ from FHA loans and VA loans which are insured by the government. Conforming conventional loans follow the loan amount guidelines set by Fannie Mae and Freddie Mac. Non-conforming loans don’t meet those qualifications, but are also considered conventional. Each mortgage lender, bank, or mortgage broker will offer different rates, terms, and fees for conventional loans, so it’s best to get a Good Faith Estimate from a number of different places to find the best loan.