Conventional loans can be both conforming and non-conforming. Conforming loans follow guidelines for loan limits as set by Fannie Mae and Freddie Mac. This limit varies from year-to-year and depends on your location. Conventional loans, FHA loans, and many other major loan programs can be considered conforming loans.
Non-conforming loans are conventional loans with higher loan values than Fannie Mae and Freddie Mac allow. These loans are called jumbo loans and are typically used to purchase high-value, luxury properties.