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Conventional

Conventional loans

Conventional loans aren't government-backed; you can put as little as 3% down (eligible first-time buyers), and PMI can be removed once you reach 20% equity.

Conventional is the default once credit and down payment support it. It is also how many homeowners later leave FHA mortgage insurance behind.

  • 3% down programs exist for eligible first-time buyers. 5% and 20% are the other common targets.
  • PMI is typical below 20% down. You can ask to remove it at 80% of the original value, and it must be canceled at 78% on schedule, assuming payments are current.
  • Loans within the FHFA conforming limit are conforming. Above that, the loan is jumbo and the rules tighten. We use the current limit rather than print a number that changes every January.
  • Debt-to-income limits depend on the automated findings and the rest of the file. Many approvals land in the low-to-mid 40s. That is not a promise.

Sales price

Mortgage insurance: —

Buydown

Est. Closing Costs:

$6,000

1% of the loan amount, up to $6,000.

Additional Costs:

$0

Buydown and discount points cost.

Optional. A buydown lowers your rate for the first 1 to 3 years, then it returns to the estimated base rate.

Points

*Points lower your rate for the whole loan term.

The rate is illustrative. It is not today’s rate. A loan officer gives the exact rate and payment.

Estimated monthly

—

Enter a down payment to see your payment.

Estimates only, not a loan quote. This is an estimate for illustration only, not a quote, rate lock, or loan approval. Rates and terms depend on your full application.

Turn this estimate into a real pre-approval

Questions

Straight answers

When does PMI come off?

You can request removal at 80% loan-to-value based on the original value, or sooner with a new appraisal if the servicer allows it. Automatic termination is generally at 78% of the original value if you are current.

Is 3%, 5%, or 20% down better?

20% avoids PMI. 3% or 5% gets you in sooner and keeps cash for repairs and reserves. The pre-approval shows the payment difference. It does not tell you which life choice is right.

What credit score do I need?

Many conventional programs want the mid-600s or better, and pricing improves as the score rises. The minimum on your file is what the findings say, not a slogan.

What is the conforming loan limit?

The FHFA resets it each year, and some high-cost counties are higher. We use the limit for the county when we pre-approve you.

What is a jumbo loan?

A loan above the conforming limit. It is still conventional, but reserves, credit, and down payment are usually stricter.

What DTI will you allow?

There is no single cutoff we advertise. Automated underwriting and the loan type set it. If the ratio is tight, we say so before you write an offer.

Reviewed by Patrick Crawford, NMLS #231625 · Last updated October 28, 2026

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