What is a conventional loan?

A conventional loan is a mortgage that is not backed by a government agency (unlike FHA or VA loans). Most conventional loans conform to guidelines set by Fannie Mae and Freddie Mac, which set loan limits and underwriting standards.

What is the conventional loan limit?

Conforming loan limits are set annually and are higher in high-cost areas (like parts of California, New York, and Hawaii). Loans above these limits are called jumbo loans — we can quote current limits for your county.

Is PMI required on a conventional loan?

PMI (private mortgage insurance) is required when the down payment is less than 20%. PMI is cancelled automatically when you reach 22% equity (based on the original purchase price), and you can request cancellation at 20%. PMI costs vary by credit score and LTV.

What credit score is needed for a conventional loan?

Most conventional lenders require a minimum credit score of 620, and stronger scores unlock better pricing and lower PMI costs.

Conventional Loan | Elevate Mortgage

Conventional Loan

The flexible, widely-used home loan

Conventional loans conform to Fannie Mae and Freddie Mac guidelines and cover most purchase and refinance scenarios for primary homes, second homes, and investment properties.

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Conventional loans conform to Fannie Mae and Freddie Mac guidelines and cover most purchase and refinance scenarios for primary homes, second homes, and investment properties.

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Key Advantages

Why Choose a Conventional?

Here's what sets this loan product apart and who it works best for.

Low Down Payment Options

Qualified first-time buyers may put as little as 3% down; repeat buyers typically 5% and up.

No Upfront MIP

Unlike FHA loans, conventional loans have no upfront mortgage insurance premium.

PMI Can Be Removed

Once you reach 20% equity, PMI can be cancelled — reducing your monthly payment.

High Loan Limits

Conforming loan limits cover most purchases, with higher limits in high-cost counties.

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Home Price$500K

$100K$2.0M

Down Payment10%

3%25%

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Calculator results are estimates only and do not constitute a loan offer, pre-approval, or commitment to lend. Actual terms may vary.

Eligibility

Qualification Requirements

General guidelines for Conventional Loan eligibility. Requirements vary by lender and scenario.

Requirement	Guideline
Typical Minimum Credit Score	620+
Typical Minimum Down Payment	3% (first-time buyers) / 5% (repeat buyers)
PMI Required	If down payment < 20% (removable at 20% equity)
Loan Limit	Conforming limits; higher in high-cost areas
Debt-to-Income	Typically up to 45%

These are general guidelines only. Specific program requirements may vary. Contact us for a personalized review of your scenario.

FAQ

Frequently Asked Questions

Common questions about Conventional Loan loans.

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West Capital Lending, Inc. is an Equal Housing Lender. We do not discriminate on the basis of race, color, religion, national origin, sex, handicap, or familial status.

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Related Loan Products

Explore other products that may complement your strategy.

FHA Loan

Government-backed, low down payment, accessible

FHA loans are insured by the Federal Housing Administration and designed for borrowers with lower credit scores or limited down payments. A popular choice for first-time homebuyers.

Learn more

VA Loan

Zero down. No PMI. You’ve earned it.

VA loans are one of the most powerful mortgage benefits available to eligible veterans, active-duty service members, and surviving spouses. No down payment and no PMI.

Learn more

Bank Statement Loan

Self-employed? Qualify with your deposits

Bank statement loans are designed for self-employed borrowers who show strong revenue but lower taxable income after deductions. Qualify using 12-24 months of personal or business bank statements instead of tax returns.

Learn more