Conventional Mortgages are designed for borrowers who may have good, though not necessarily perfect, credit histories and have their own funds available for a down payment.
Conventional Mortgage loans offer lower rates because they are originated to established guidelines.. These loans must also "conform" to established maximum loan limits and stricter guidelines set by Fannie Mae and Freddie Mac. The conforming loan limit which is set annually by the Federal Housing Finance Agency is based off of the mortgage loan amount not the value of the home.
Details and Advantages for Conventional Mortgages: