This is a mortgage loan that is not backed nor associated with any government agency. Conventional loans are split into 2 groups: “Conforming” and “Non-Conforming” loans. Conforming conventional loans follow the loan amount limits and lending guidelines established by Fannie Mae and Freddie Mac, the largest investors in the secondary mortgage market who buy and securitize these loans, as well as help to set the standards for the mortgage industry. Down payments can be as low as 3%. Non-conforming conventional loans are loans originated either without following Fannie Mae and Freddie Mac guidelines or have loan amounts above their limits.