A Conventional loan is any type of creditor agreement that isn’t financed through the Veterans Administration (VA) or the Federal Housing Administration (FHA). All Conventional loans are generally guaranteed by government-sponsored entities (GSEs)Freddie Mac (FHLMC) and Fannie Mae (FNMA).
The two different types of Conventional loans are conforming and non-conforming. Conforming loans are required to meet the guidelines set by Freddie Mac and Fannie Mae. All other loans that do not meet these guidelines are considered non-conforming.
For a loan to be considered Jumbo, the amount borrowed exceeds the limit set by Fannie Mae (FNMA) and Freddie Mac (FHLMC). Any loan amount over $647,200 would fall into the Jumbo loan category.