Everything about conventional mortgages — requirements, down payment options, PMI, credit score needs, and how conventional loans compare to FHA and VA programs.
A conventional loan is a mortgage not backed by the federal government (unlike FHA or VA loans). They're offered by private lenders and typically follow guidelines set by Fannie Mae and Freddie Mac.
Conventional loans are the most common type of mortgage and often offer the best rates for borrowers with strong credit and a solid down payment.
From down payments to PMI — everything about conventional mortgages.
Credit, income, and documentation requirements for conventional approval.
Options from 3% down to 20%+. Find the right down payment strategy.
How private mortgage insurance works and when you can cancel it.
Conforming limits, jumbo loans, and high-balance conventional options.
What credit score you need and how it affects your conventional rate.
Side-by-side comparison of all three major loan types.
Important conventional mortgage terms explained simply.
Private Mortgage Insurance — required when your down payment is under 20%. Can be canceled once you reach 20% equity.
A conventional loan within Fannie Mae/Freddie Mac loan limits. Most common type of conventional loan.
A conventional loan that exceeds conforming limits. Typically requires higher credit scores and larger down payments.
Your monthly debts divided by gross monthly income. Conventional loans typically cap DTI at 45-50%.
The ratio of your loan amount to the property value. Lower LTV = better rates and terms.
Adjustable-Rate Mortgage — rate starts fixed then adjusts. Common for jumbo loans and shorter expected ownership.
Most lenders require a minimum credit score of 620 for conventional loans. However, a score of 740+ will get you the best rates and terms. Borrowers with scores below 680 may face higher interest rates or stricter requirements.
Yes. Conventional loans with as little as 3% down are available through programs like HomeReady (Fannie Mae) and Home Possible (Freddie Mac). You'll pay PMI until you reach 20% equity, but PMI can be canceled — unlike FHA MIP which often lasts for the life of the loan.
PMI can be requested to be canceled when your LTV reaches 80% (20% equity). At 78% LTV, PMI is automatically terminated by law (for loans originated after 1999). Some lenders may also accept a new appraisal to prove increased home value for earlier cancellation.
Conforming loans fall within Fannie Mae/Freddie Mac loan limits ($766,550 for most areas in 2026). Jumbo loans exceed these limits. Jumbos typically require higher credit scores (680-700+), larger down payments (10-20%), and more reserves. Rates on jumbo loans can sometimes be competitive with or even lower than conforming rates.
Check your eligibility and see what conventional rate you qualify for. No obligation, no credit impact.
Takes about 10 minutes · No credit score impact
Helpful Next Steps
Conventional loans are one of several paths to homeownership. Mortgage Clarity explains the basics, while related Valley West resources help you explore each option in more detail.
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