Home Loans in 48 StatesARBOR Financial Group · NMLS #236669
Conforming Mortgage
A conventional loan is a mortgage that is not insured by a government agency. Qualified first time buyers can put as little as 3% down, and with 20% down there is no private mortgage insurance. Use one to buy a primary home, a second home or an investment property, or to refinance the loan you have.
About 3 minutes. Comparing options won't affect your credit score.
Call today: 866-521-6488NMLS #236669 · Equal Housing Opportunity · NMLS Consumer Access
3%
Minimum down for qualified first time buyers
20%
Down payment that avoids PMI
620
Typical minimum credit score
$832,750
2026 conforming limit in most areas
Conventional Basics
Conventional home loans are mortgages that are not insured or guaranteed by a government agency. They are one of the most flexible and widely used ways to finance a home, with low down payment options, competitive interest rates and fewer property restrictions, which makes them a strong fit for buyers with solid credit.
Conventional loans suit first time and repeat buyers, borrowers with good credit and stable income, and anyone who wants to choose their own loan term. They also work well for homeowners who want to refinance for a better rate or tap into home equity.
Your lender reviews your credit score, income and debt to income ratio to decide how much you can borrow. You can choose a fixed or adjustable rate, with terms from 10 to 30 years, so the payment fits your plans.
Conforming loans follow Fannie Mae and Freddie Mac guidelines and stay within the conforming loan limit. Nonconforming loans, such as jumbo loans, finance higher priced homes above that limit. Fixed rate loans keep the same rate for the life of the loan, while adjustable rate mortgages start lower and adjust over time.
Qualified buyers can put as little as 3% down, and with 20% down there is no private mortgage insurance at all. Conventional loans offer competitive rates and flexible terms, and they can be used for a primary home, a second home or an investment property.
If you have good credit, steady income and want lower long term costs, a conventional loan is worth comparing. Whether you are buying or refinancing, an ARBOR loan originator can compare it side by side with FHA and VA options so you can choose with confidence.
Why ARBOR
We help homebuyers and homeowners find the right financing with competitive rates and expert guidance. Whether you are buying a home, refinancing or investing, our team keeps the mortgage process simple and clear.
With access to multiple lenders, we compare loan options to find strong rates and terms for your situation, then guide you from application to closing.
Ready to get started? Talk with ARBOR about your conventional loan options today.
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FAQ
Answers to common questions about conventional loans, including credit scores, down payments, mortgage insurance and 2026 loan limits.
Still have questions?
Talk with a licensed ARBOR loan originator about your conventional loan options.
866-521-6488[email protected]Browse all mortgage FAQsA conventional home loan is a mortgage that is not backed by a government agency such as the FHA, VA or USDA. Most conventional loans follow guidelines set by Fannie Mae and Freddie Mac, and they can be used for primary residences, second homes and investment properties.
Most lenders look for a minimum credit score of 620. Higher scores usually earn better rates and terms, and a score of 740 or above can mean noticeably lower interest rates and lower private mortgage insurance costs.
Qualified first time homebuyers can put as little as 3% down. Many standard conventional loans start at 5% down, and putting 20% down removes the need for private mortgage insurance.
Private mortgage insurance, or PMI, is required when you put less than 20% down. It protects the lender, and once you reach 20% equity in your home you can have PMI removed, which lowers your monthly payment.
The Federal Housing Finance Agency sets conforming loan limits each year. For 2026 the limit for a one unit home is $832,750 in most areas and up to $1,249,125 in high cost areas. Loans above the limit for your county are jumbo loans.
No. Conventional loans are available to first time and repeat buyers, and they can finance primary residences, vacation homes and investment properties.
Conventional loans usually need a higher credit score but offer more flexibility on property types and loan amounts. FHA loans accept lower scores and small down payments. FHA mortgage insurance often lasts for the life of the loan, while PMI on a conventional loan can be removed once you reach 20% equity.
Yes. Unlike government backed loans, which generally require you to live in the home, conventional loans can finance rental properties and vacation homes. Expect a larger down payment and a higher credit score requirement than for a primary residence.
Conventional loans have no income limits. Lenders look at your debt to income ratio instead, and a ratio of 43% or lower is preferred, although some lenders accept higher ratios with strong credit or cash reserves.
The timeline depends on your documentation, employment verification and the home appraisal. Getting preapproved before you shop can speed things up.
Yes. You can refinance a conventional loan to get a lower rate, change your term or take cash out of your equity. Refinancing can also remove PMI once you have enough equity.
*Important notice: By refinancing your existing loan, your total finance charges may be higher over the life of the loan. The content provided within this website is presented for information purposes only. This is not a commitment to lend or extend credit. Information and/or dates are subject to change without notice. All loans are subject to credit approval. Other restrictions may apply. ARBOR Financial Group is not affiliated with an agency of the federal government, HUD or FHA. THIS IS NOT A GOVERNMENT DOCUMENT. HUD or FHA did not distribute or approve this material.
