Conventional loan is a mortgage that is not guaranteed or insured by any government agency, but rather guaranteed by the two government-sponsored enterprises (GSEs) Fannie Mae and the Freddie Mac. All Conforming, High-Balance, and Super-Conforming mortgages conform to the terms and conditions of the two GSEs. One of the advantages of conventional mortgages is that you can avoid paying Private Mortgage Insurance (PMI) if you have at least a 20% down payment whereas FHA loans require mortgage insurance regardless of the down payment.
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