Conventional Loans: A Smart, Flexible Choice
The most common loan in America — and for good reason.
What Is a Conventional Loan?
A conventional loan is a mortgage that isn’t backed by the government (like FHA or VA), but is typically supported by Fannie Mae or Freddie Mac. It’s a great choice if you have decent credit, steady income, and want options for how you repay.
Purchase, Refinance, and Property Types
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Available for home purchases and rate/term or cash-out refinances
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Eligible for primary residences, second homes, and investment properties
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Great flexibility for single-family homes, Townhomes, condos, and multi-unit properties (up to 4 units)
Loan Terms Available
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30-Year Fixed – Most popular: predictable monthly payments for long-term stability
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15-Year or 20-Year Fixed – Pay off faster with less interest over time
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Adjustable-Rate (ARM) – Lower starting rate, adjusts after the fixed period (usually 5, 7, or 10 years)
Down Payment Options
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As low as 3% for first-time buyers
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5% or more for many others
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20%+ down lets you avoid mortgage insurance altogether
What About Mortgage Insurance?
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If your down payment is less than 20%, you'll need to pay PMI (Private Mortgage Insurance).
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It protects the lender if you stop making payments — but you're the one who pays for it.
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The good news? It can usually be removed once you build enough equity.
Loan Limits
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Standard conforming loan limit: $806,500 for a single-family home in most areas
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High-cost areas: Up to $1,209,750 (e.g., parts of California, New York, D.C.)
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Multi-unit properties (2–4 units): Higher limits apply — and they increase further in high-cost areas
We’ll help you confirm the exact limit based on your property type and location.