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Conventional Loan
The most popular loan in America — flexible, competitive, and built for the long haul.
Min down payment
3%
Min credit score
620
Max loan (2025)
$806,500
PMI
Removable at 80% LTV
Overview
About the Conventional loan
Conventional loans are mortgages not backed by a government agency. They follow guidelines set by Fannie Mae and Freddie Mac and offer the broadest range of terms, down payments, and property types.
Best for
Who this fits
- Buyers with 620+ credit
- Steady W‑2 or self‑employed income
- Primary, second home, or investment
Pros
- No upfront mortgage insurance
- PMI drops off automatically at 78% LTV
- Available on 1‑4 unit properties
- Wide range of fixed and ARM terms
Things to consider
- Stricter credit requirements than FHA
- PMI required if down payment <20%
Requirements
What you'll need
- Credit score 620 or higher
- Debt‑to‑income ratio typically under 45%
- 2 years of stable employment history
- Down payment from savings, gift funds, or sale proceeds
FAQ
Common questions
Can I put down only 3%?
Yes — through Fannie Mae HomeReady and Freddie Mac Home Possible programs, qualified first‑time buyers can put as little as 3% down.
When does PMI go away?
PMI is automatically cancelled when your loan balance reaches 78% of the original home value, or you can request removal at 80% LTV.
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