Conventional Loans
The flexible, cost-effective standard for borrowers with solid credit.
Conventional Loan at a Glance
What Is a Conventional Loan?
A conventional loan is any mortgage that isn't backed by a government agency — meaning it doesn't run through the FHA, VA, or USDA. Instead, it's offered by private lenders and typically follows guidelines set by Fannie Mae and Freddie Mac.
Think of "conventional" as a category rather than a single product. It's the umbrella that covers most of the loan structures buyers actually use — fixed rate loans, adjustable rate loans, hybrid loans, jumbo and construction loans, and more.
A loan that falls within the Fannie Mae and Freddie Mac size limits is called "conforming." For 2026, the baseline conforming limit for a one-unit home is $832,750 in most of the country, and higher in high-cost areas. Go above that and you're into jumbo territory.
Who a Conventional Loan Is For
Conventional loans tend to be the go-to for buyers with solid credit and a reasonable down payment who want flexibility. Here is what makes them a strong fit:
Many Structures, One Category
Fixed, adjustable, hybrid, jumbo, and more all live under the conventional umbrella.
No Lifetime Mortgage Insurance
Private mortgage insurance can be removed once you reach 20% equity — unlike FHA.
Cost-Effective Over Time
Often the most cost-effective option for borrowers with strong credit.
Flexible Property Types
Works for primary homes, second homes, and investment properties.
Lower Down Payment Options
Qualified buyers can put down as little as 3% — you do not need 20%.
Strong-Credit Advantage
If your credit is solid, conventional usually beats government-backed pricing.
Today's Conventional Rates
National average rates for conforming conventional loans.
Source: Optimal Blue (OBMMI) via FRED. As of June 10, 2026.
Rates shown are national benchmark averages (Optimal Blue Mortgage Market Indices and the Freddie Mac Primary Mortgage Market Survey, via the Federal Reserve Bank of St. Louis) and are for informational purposes only. They are not an offer, quote, or commitment to lend, and do not reflect any specific borrower scenario, points, fees, or APR. Contact us for a personalized rate quote.
Estimate Your Payment
Adjust the numbers to see how price, down payment, rate, and term shape your monthly payment. Enter any rate to model it — your real rate comes from your application.
This is an estimate for planning purposes only — not a rate quote, loan offer, or commitment to lend. Your actual rate and payment depend on your full application. Contact us for a personalized quote.
How the Process Works
From first conversation to closing day, here is what to expect.
Get Pre-Approved
We review your credit, income, and goals, then issue a pre-approval so you know your budget and can shop with confidence.
Find Your Home
Make offers backed by a real pre-approval. Sellers take you more seriously when your financing is lined up.
Submit Your Application
Once you are under contract, we finalize your application and lock your rate.
Underwriting & Appraisal
The lender verifies your details and orders an appraisal to confirm the home's value. Our in-house processing keeps this moving.
Close
Sign your final documents, fund the loan, and get the keys. We are with you through the final signature.
Eligibility
The bar is generally higher than for government-backed loans. Expect lenders to want a healthy credit score, a manageable debt-to-income ratio, and documented, stable income. Down payment requirements vary by program and borrower profile. Loans within the conforming limit follow Fannie and Freddie rules; larger amounts move into jumbo underwriting.
What Our Clients Say
“Don was incredible to work with throughout my entire home-buying process as a first-time buyer. He was always quick to respond, happy to run different numbers for me, and consistently helped me stay on top of my timelines and due dates.”
Cailyn Hankins
Google Review
FAQs
Conventional Loan FAQs
"Conventional" means not government-backed. "Conforming" means it also fits within the Fannie Mae and Freddie Mac size and guideline limits. A conforming loan is a type of conventional loan; a jumbo loan is conventional but not conforming because it exceeds the limit.
No — that is a common myth. You can put down less, but if you do, you will usually pay private mortgage insurance (PMI) until you reach 20% equity, at which point it can be removed.
For borrowers with strong credit, often yes — there is no lifetime mortgage insurance and PMI eventually drops off. For buyers with lower credit or a smaller down payment, FHA can be easier to qualify for. It comes down to your specific numbers.
Yes. Conventional financing is one of the most common ways to fund a rental or investment purchase, though the qualifying standards are tighter than for a primary residence.
Let's find the right loan for you
Get pre-approved in minutes, or talk it through with a local loan officer first.