A conventional mortgage is a mortgage that is not insured by any government program.
Typically, conventional mortgages are limited to a maximum amount of $417,000, with stringent guidelines on income, debt, credit scores and debt-versus-income.
Conventional mortgages above 80% loan-to-value normally are required to carry Private Mortgage Insurance (PMI). PMI is issued through private entities and have stringent guidelines similar to conventional mortgages.
Fannie Mae and Freddie Mac sponsor conventional programs.
Conventional Mortgages are offered with a fixed rate or an adjustable rate (ARM), depending on customer wants and needs.