Flexible Down Payments
Eligible programs may offer low-down-payment choices, while larger down payments can change pricing and mortgage-insurance needs.
Flexible Mainstream Financing
Conventional Home Loans
Conventional financing offers flexible purchase and refinance options for qualified borrowers, with programs for primary residences, second homes and investment properties.
Flexible Down-Payment OptionsMultiple Property and Occupancy TypesFixed and Adjustable Terms
Conventional vs. FHA
Which financing option may fit you?
Compare important differences in qualification, down payment, mortgage insurance, monthly payment and long-term cost before choosing a program.
Watch on YouTubeConventional Mortgage Overview
A versatile mortgage path for many qualified borrowers.
Conventional loans are not insured or guaranteed by a government housing agency. Conforming conventional loans follow standards that allow eligible mortgages to be purchased by Fannie Mae or Freddie Mac.
Loan structure depends on occupancy, property type, down payment, credit, income, assets, debts and the complete risk profile.
Key Benefits
Why qualified homebuyers consider Conventional financing.
Compare the complete structure, payment, costs and long-term fit.
Broad Property Options
Financing may be available for eligible homes, condominiums, PUDs, multi-unit properties and manufactured housing.
Occupancy Choices
Programs may support primary residences, second homes and investment properties.
Fixed or Adjustable Rates
Qualified borrowers may compare multiple loan terms and rate structures.
Mortgage Insurance Options
When required, mortgage insurance structure and potential cancellation rules vary by transaction.
Conforming Market Access
Loans within the applicable limits may qualify under Fannie Mae or Freddie Mac standards.
Eligibility and Qualification
What is evaluated for a conventional loan.
Approval depends on the complete borrower, property and transaction profile.
Credit Profile
Credit scores, payment history and the complete credit report are reviewed.
Income and Employment
Stable, documented income and employment or other eligible income sources support qualification.
Assets and Reserves
Funds for down payment, closing and any required reserves must be documented.
Debts and Payment
Current obligations and the proposed housing payment are evaluated together.
Property and Occupancy
The property type and intended occupancy affect available program rules.
Loan Limit
A conforming loan must remain within the applicable FHFA county and unit limit.
Conforming Loan Limits
Confirm the correct limit for the property county.
FHFA establishes conforming loan limits annually. The 2026 baseline for a one-unit property is $832,750 in most counties, while designated high-cost areas may have higher limits.
The applicable limit also changes for two-, three- and four-unit properties, so the property location and unit count should be confirmed early.
Mortgage Insurance and Pricing
Understand how down payment and risk affect cost.
Conventional pricing and mortgage insurance are transaction-specific.
May apply
PMI is commonly required on certain conventional loans with less than 20% down. Cost and cancellation rules depend on the coverage and loan.
Varies by profile
Credit, loan-to-value, occupancy, property type, loan purpose and other factors may affect rate and pricing.
Important: Compare the interest rate, mortgage insurance, lender fees and total cash-to-close using the official Loan Estimate—not just the advertised rate.
Property Requirements
The property must meet conventional and lender standards.
The appraisal and underwriting review support value, marketability and program eligibility.
Eligible Property Type
The home must fit the applicable program and property-type requirements.
Appraisal Review
An appraisal or permitted valuation method supports value and collateral review.
Condition and Marketability
Safety, soundness, condition and marketability concerns may require review.
Condo or PUD Review
Projects may need to satisfy applicable eligibility and insurance standards.
Occupancy
Primary, second-home or investment use must be accurately disclosed.
Independent Inspection
An appraisal is not a substitute for a professional home inspection.
Loan Comparison
Conventional compared with FHA financing.
The stronger option depends on credit, payment, mortgage insurance, property and long-term plans.
| Feature | Conventional | FHA |
|---|---|---|
| Program Backing | Not government-insured | Insured by the Federal Housing Administration |
| Down Payment | Varies by program and borrower profile | Minimum required investment may be 3.5% when applicable requirements are met |
| Mortgage Insurance | PMI may apply and may be cancellable | Upfront and annual FHA mortgage insurance generally apply |
| Loan Limits | FHFA conforming limits for conforming loans | FHA county loan limits |
| Occupancy | Primary, second-home and investment options may exist | Generally primary residence |
| Credit Flexibility | Standards and pricing depend on the complete profile | May offer flexibility for some qualified borrowers |
Your Conventional Loan Process
A clear path from pre-approval to closing.
Successful conventional financing begins by matching the borrower, property and loan structure to the right program.
Consultation
Review goals, occupancy, income, credit, assets, debts and timing.
Pre‑Approval
Evaluate program options, loan limits, payment and qualification.
Offer and Property Review
Review the contract, property type, occupancy and estimated cash-to-close.
Appraisal and
Underwriting
Complete valuation, lender underwriting and required conditions.
Closing
Review final terms, funds, disclosures and sign the closing documents.
Frequently Asked Questions
Common Conventional home loan questions.
A conforming loan meets applicable standards and stays within the FHFA loan limit for the county and number of units.
No. Eligible programs may allow lower down payments, although mortgage insurance and pricing may apply.
PMI commonly applies to certain conventional loans above the applicable loan-to-value threshold. Exact requirements depend on the transaction.
Potentially. Cancellation rules depend on federal law, investor requirements, payment history, property value and the specific mortgage-insurance structure.
Potentially, yes. Occupancy, down payment, reserves, pricing and property requirements differ from primary-residence financing.
No. FHFA publishes county and unit-specific limits, including higher values for designated high-cost areas.
No. Buyers should consider an independent home inspection for a detailed condition review.
Experience. Guidance. Trust.
Build the right conventional financing strategy.
I’m Duane Vizinau, a mortgage loan advisor with more than 25 years of experience in mortgage lending, underwriting, account management and loan structuring. I help borrowers compare down payment, mortgage insurance, conforming limits, occupancy, estimated payment and cash-to-close options.