Conventional Loans
A conventional loan is a mortgage not insured by a federal agency, available from 3% down with a minimum credit score around 620. Loans at or below the 2026 conforming limit of $832,750 qualify for standard Fannie Mae and Freddie Mac pricing. Private mortgage insurance applies below 20% down and can be removed at 20% equity.
The most widely used mortgage in America — flexible terms, competitive rates, and options for nearly every financial profile. Ideal for borrowers with solid credit and documented income.
What Is a Conventional Loan?
A conventional loan is a mortgage not backed by a government agency — unlike FHA, VA, or USDA loans. Instead, it conforms to guidelines set by Fannie Mae and Freddie Mac, which allows lenders to offer them at highly competitive rates.
Conventional loans are the most popular mortgage type in the U.S. for good reason: they offer flexible terms, lower long-term costs for qualified borrowers, and can be used for primary residences, second homes, and investment properties.
At The Mortgage Zone, we access conventional loan pricing from 100+ wholesale lenders, meaning you're not stuck with one bank's rate sheet — you get the best available pricing for your profile.
Who Conventional Loans Work Best For
- Borrowers with credit scores of 620 or higher
- W-2 employees with 2 years of employment history
- Self-employed borrowers with 2 years of tax returns
- Buyers putting 20%+ down to avoid PMI
- Those purchasing a second home or investment property
- Borrowers refinancing from an FHA to remove MIP
Loan Term Options
- 30-year fixed — most popular, lowest monthly payment
- 20-year fixed — faster payoff, lower total interest
- 15-year fixed — significant interest savings
- 10-year fixed — aggressive payoff strategy
- 5/1, 7/1, 10/1 ARM — lower initial rate, adjusts later
Free Tool
Estimate Your Conventional Loan Payment
Plug in your home price, down payment, and rate to instantly see your estimated monthly principal and interest — no personal information required.
20%
Down Payment
Saved
No PMI
~$1,720
Est. Payment
Qualification Guidelines
General requirements — your specific scenario may vary. We'll review your full profile and identify the best available options.
Credit & Income
- Minimum 620 credit score (680+ for best rates)
- 2-year employment history preferred
- W-2s, pay stubs, or tax returns required
- Debt-to-income ratio typically under 45%
Down Payment & Assets
- 3% minimum for first-time buyers
- 5% minimum for repeat buyers
- 20% to eliminate PMI entirely
- Gift funds allowed with documentation
- 3 months reserves recommended
Property Requirements
- Primary residences, second homes, investment
- Single-family, condos, 2–4 unit properties
- Loan amounts up to $766,550 (conforming)
- Jumbo options available above limit
- Property appraisal required
Ready to See Your Conventional Loan Options?
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