Flexible Financing for the Way You Want to Move.
Conventional loans offer flexible financing options for qualified homebuyers, with competitive terms and options for both first time and experienced buyers.
What Are Conventional Loans?
A conventional loan is a mortgage that is not insured or guaranteed by a government agency such as the FHA, VA, or USDA. Conventional financing is one of the most widely used mortgage options and can offer competitive rates, flexible terms, and financing for a variety of property types.
Depending on the loan program and borrower qualifications, conventional financing may allow down payments as low as 3%. It can be used for primary residences and, under applicable guidelines, may also provide financing options for second homes and investment properties.
For borrowers who meet the necessary credit, income, asset, and property requirements, a conventional mortgage can provide a flexible path to homeownership or real estate financing. Fannie Mae's HomeReady and Freddie Mac's Home Possible are examples of conventional programs offering eligible borrowers options as low as 3% down.
At a Glance
| Down Payment | Options may be available with as little as 3% down |
| Credit Score | Qualification and pricing depend on the borrower’s overall credit profile |
| Loan Terms | Fixed-rate and adjustable-rate options may be available |
| Loan Limits | $832,750 baseline for a one-unit property in 2026; higher limits apply in eligible high-cost areas |
| Mortgage Insurance | Generally required when the down payment is less than 20%, subject to applicable guidelines |
| Gift Funds | May be permitted for eligible primary residence and second-home transactions |
Is a Conventional Loan Right for You?
A conventional loan may be a good fit if you:
- Have established credit and a stable financial profile
- Want flexible down payment options based on your qualifications
- Want the potential to eliminate private mortgage insurance once applicable requirements are met
- Are financing a primary residence, second home, or investment property
- Want to compare a variety of fixed-rate and adjustable-rate mortgage options
Important Considerations
Private Mortgage Insurance
A down payment of less than 20% may require private mortgage insurance. Depending on the loan and applicable requirements, conventional mortgage insurance may later be eligible for cancellation.
Credit & Pricing
Your credit profile can affect both qualification and the terms available to you. Stronger overall borrower profiles may qualify for more favorable conventional financing options.
Loan Limits
Conforming conventional mortgages are subject to annual loan limits established by the Federal Housing Finance Agency. For 2026, the baseline limit for a one-unit property is $832,750, with higher limits available in qualifying high-cost areas.
Property & Occupancy
Conventional financing may be available for primary residences, second homes, and investment properties, but down payment, reserve, pricing, and other requirements can differ based on how the property will be used.
Explore Related Loan Programs
FHA Loans
Flexible government-backed financing that may be an option for buyers seeking a lower down payment or more flexible qualification requirements.
LEARN MOREHome Possible
A conventional financing option designed to expand access to homeownership for eligible borrowers, including down payment options as low as 3%.
LEARN MOREDown Payment Assistance
Explore programs that may help eligible homebuyers reduce the upfront funds needed for down payment or closing costs.
LEARN MOREJumbo Loans
Financing designed for loan amounts that exceed applicable conforming loan limits.
LEARN MORECommon Questions About Conventional Loans
A conventional loan is a mortgage that is not insured or guaranteed by a federal government agency. Many conventional mortgages follow guidelines established for loans purchased by Fannie Mae or Freddie Mac.
Some conventional loan programs allow qualified borrowers to purchase a home with as little as 3% down. The amount required depends on the specific program, property, occupancy, and borrower qualifications.
No. A 20% down payment is not required for many conventional loan programs. However, putting less than 20% down may result in a private mortgage insurance requirement.
Private mortgage insurance, commonly called PMI, generally protects the lender when a conventional borrower makes a smaller down payment. Unlike FHA mortgage insurance, conventional mortgage insurance may be eligible for cancellation when applicable requirements are satisfied.
See What Options May Work for You
Loan programs, rates, terms, and eligibility requirements are subject to change and may vary based on borrower qualifications, property type, occupancy, loan amount, and other factors. Not all applicants will qualify. Contact Premier Point Mortgage for current program requirements and available options.
