Mortgage plans are divided into different types. One of the general categories is termed as conventional loans. It can then be classified into the subcategories of conforming and non-conforming loans. Conforming loans are a residential mortgage loan that corresponds to the set of guidelines implemented by The Office of Federal Housing Enterprise Oversight (OFHEO). It is a mortgage that is equal to or less than the dollar amount dictated by the conforming loan limit decided upon by Fannie Mae (FNMA) and Freddie Mac (FHLMC).