Conventional
The workhorse loan. Strong credit and steady income get rewarded here.
Short answer
Conventional loans are the standard mortgage for borrowers with solid credit and steady, documentable income. The 2026 baseline conforming limit is $832,750, and mortgage insurance, when required, can be removed as your equity grows. If you qualify conventionally, it is usually the most cost-effective way to finance a home.
Who this is for
- Buyers with solid credit and documentable income
- Homeowners who want mortgage insurance they can eventually remove
- Move-up buyers, second-home buyers, and investors using full documentation
- Anyone comparing an FHA offer who might do better conventionally
What it takes to qualify
- Steady, documentable income: W-2s, pay stubs, or full tax returns for self-employed borrowers.
- Credit strength drives pricing in tiers. Stronger scores earn better terms rather than a simple pass or fail.
- Loan amounts up to the conforming limit, $832,750 baseline for 2026, higher in designated high-cost areas.
- Low down payment options exist for qualifying buyers. Larger down payments reduce or remove mortgage insurance.
How it works with me
A process you can see the whole way through
A Lamm Team call
Income, credit picture, timeline, and goal. By the end you know whether conventional is your lane or another program serves you better.
A real number review
You get a full cost breakdown, mortgage insurance included when it applies, so you can shop with a budget instead of a hope.
A managed close
My team runs the file with weekly updates. Conventional deals are predictable when the file is packaged right the first time.
What to know before you decide
Why it is the workhorse
Conventional financing is the default for a reason. Pricing is competitive, property types are flexible, and the loan works for primary homes, second homes, and rentals. Underwriting follows Fannie Mae and Freddie Mac guidelines, so the rules are consistent and the process is predictable. When a borrower fits the box, I rarely need anything fancier. The craft is in knowing when you fit the box and when a different program, FHA for thinner credit or non-QM for self-employed income, actually serves you better.
The truth about PMI
Private mortgage insurance gets treated like a villain, and that is lazy math. PMI on a conventional loan is temporary. You can request removal once your equity reaches 20 percent, and it terminates automatically later under federal law. Compare that to FHA mortgage insurance, which usually stays for the life of the loan at minimum down payment. Sometimes paying PMI for a few years beats waiting years to save a bigger down payment while prices move. We run that math, not a slogan.
Rates and terms subject to change without notice. Not a commitment to lend. Not available in all states. This is not tax, legal, or financial advice. Consult a qualified professional for your specific situation.
Run your own numbers first
The payment calculator shows how down payment size changes your monthly cost and your mortgage insurance picture. Two minutes, no contact info required.
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Conventional: common questions
How much do I need to put down on a conventional loan?
Less than most people think. Low down payment conventional options exist for qualifying buyers, and you do not need 20 percent to buy. What 20 percent does is remove mortgage insurance from the equation. We compare the real monthly cost at several down payment levels and pick the one that fits your cash and your budget.
What is the conforming loan limit for 2026?
The baseline conforming limit is $832,750 for 2026, with higher limits in designated high-cost areas. Loans above your county's limit are jumbo loans, which carry different underwriting expectations. If your target price sits near the line, structuring the loan to stay conforming can be worth real money.
When can I get rid of PMI on a conventional loan?
You can request PMI removal once your equity reaches 20 percent through paydown, appreciation, or improvements, and federal law ends it automatically later on schedule. This is the key difference from FHA, where mortgage insurance usually persists for the life of the loan at minimum down payment. PMI on conventional loans is a phase, not a sentence.
Is conventional better than FHA?
It depends on your credit and cash. Strong credit usually does better conventionally because mortgage insurance is cheaper and removable. Thinner credit or smaller savings often does better with FHA's more forgiving structure. The honest answer comes from pricing both against your actual file, which takes me about a day.
Can I use a conventional loan for a rental property?
Yes. Conventional financing works for investment properties with full income documentation, larger down payments, and pricing adjustments for occupancy. If your portfolio is growing or you would rather not document personal income, a DSCR loan qualifies the property on its own rent instead. I lend both ways and will tell you which fits.
What credit score do I need for a conventional loan?
There is a minimum to enter the program, but the real story is pricing tiers. Conventional pricing improves step by step as scores rise, so two approvable borrowers can pay noticeably different amounts. If your score sits near a tier boundary, sometimes a short credit cleanup before locking saves more than any rate shopping would.
Fine-tune your Conventional plan
Send the property, purpose, timing, and numbers you already know. The email opens prefilled for this Conventional page so the review starts in the right lane.
MortgageOne Inc. is licensed for consumer mortgage lending in 41 states and Washington, DC. Chris Lamm is individually licensed in 19 states.