One day, you'll want to buy a home. But not until then will your bank be willing to give you the money for it! The reason is that banks have rules on how much they're allowed to lend out in loans - limits set by Freddie Mac and Fannie Mae (a couple of GSEs). These guidelines are designed with safety features so lenders don't make bad decisions when lending their money out; this way, people can get mortgages without worrying about getting screwed over if something upsets them financially. This type of loan is bound by certain limitations and restrictions such as those laid out from the GSEs. Conventional loans, which are backed by the GSEs Freddie Mac and Fannie Mae, provide you with more flexible loan limits.