A conventional mortgage is a loan that is not guaranteed or insured by any government agency like HUD, FHA, VA, or the Farmers Home Administration. Its is typically fixed in its terms and rate.
These mortgages adhere to Fannie Mae guidelines. Fannie Mae, or Federal National Mortgage Association, is a corporation created by the federal government that buys and sells conventional mortgages. It sets the maximum loan amount and requirements for borrowers.
Usually, a conventional mortgage is a 30-year fixed rate loan. That means it has a fixed interest rate for the 30 year term of the mortgage.