Conventional Loan is a mortgage loan that is not insured by any government agency, it is the most common type of mortgage. There are conforming conventional loans and non-conforming conventional loans. Conforming conventional loans follow the Fannie Mae and Freddie Mac guidelines. Non-conforming loans do not follow those guidelines. Rates, terms, and fees, differ on conventional loans, hence, finding a good, dedicated mortgage agency is important to bringing you the best rates on your loan.