Conventional Mortgages are loan products not insured or guaranteed by the federal government which adhere to Fannie Mae and Freddie Mac guidelines.  Fannie Mae, which is the Federal National Mortgage Association (FNMA), began in 1938, and Freddie Mac, which is the Federal Home Loan Mortgage Corporation (FHLMC), began in 1970.  Both are government-sponsored enterprises (GSE) which securitize mortgage loans in the form of mortgage-backed securities (MBS) to sell to investors in the secondary mortgage market.  This increases the supply of money available to finance the purchase of property, or refinance existing mortgages.  Private Mortgage Insurance (PMI) is required for Conventional mortgages with less than 20% equity, to protect lenders in the event of borrower default.  Conventional Mortgages can be used to Purchase, Refinance or Renovate residential properties which will be primary residences, second homes or investment properties.