New Jersey Conventional loans are the most common type of residential mortgages, making up about 73% of total residential loans originated for new homes in 2023. They are broken down into two different types: Conforming and Non-Conforming.

Conforming Loans are those that adhere to a number of standards set forth by the Government Sponsored Enterprises, the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac).

The creation of these two enterprises allows for liquidity in the market and more loans to be created.

Non-Conforming Loans are those that do not meet the standards set forth by Fannie and Freddie, whether that be due to loan size, down payment requirements, or a number of different factors. Jumbo Loans are the most common type of Non-Conforming Loans.