If you have steady income and solid credit, a conventional loan is often the most affordable path to homeownership — with fewer long-term fees than government-backed options.
Put more of your money toward your home and less toward fees with a loan that adapts to your down payment, your credit, and your timeline.
Conforming conventional loans
These loans fall within the loan limits set each year by Fannie Mae and Freddie Mac. Because they meet standard guidelines, they typically come with the most competitive interest rates and the widest range of term options — from 10 to 30 years, fixed or adjustable.
Qualified buyers can put down as little as 3%. And unlike FHA loans, private mortgage insurance is not permanent — once you reach 20% equity in your home, PMI can be removed, which lowers your monthly payment for the rest of the loan.
Non-conforming conventional loans
When the amount you need exceeds the conforming loan limit for your county, you move into jumbo territory. These loans make higher-priced homes possible, but the qualifying standards are tighter.
Expect a larger down payment, a stronger credit profile, and more cash reserves at closing. Rates are still competitive, and for buyers purchasing in higher-cost markets this is often the only conventional route available.
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