A conventional mortgage is a loan that is not insured or guaranteed by any government agency. It is typically issued by a bank, credit union, or other financial institution and follows specific underwriting guidelines set forth by Fannie Mae or Freddie Mac. Conventional loans are generally available in fixed-rate or adjustable-rate options and require a down payment of at least 5% to 20%. The interest rate for conventional mortgages is typically higher than that of government-insured loans like FHA or VA loans, but they often have lower mortgage insurance premiums.