Conventional Loans
Conventional loans, plainly put.
A conventional loan is not insured or guaranteed by the government. For many buyers it is the familiar path, and mortgage insurance is not always permanent.
At a glance
The familiar path, with flexibility built in.
Many conventional loans follow conforming guidelines, including annually updated loan limits. Conventional loans above the applicable conforming limit are generally called jumbo loans.
When the down payment is smaller, private mortgage insurance, or PMI, commonly applies. It may be canceled or terminated once applicable equity and other requirements are met.
What defines a conventional loan
- Not government-backed
- Conforming options have loan limits
- PMI can apply with a smaller down payment
- PMI may be canceled once requirements are met
- Guidelines vary by loan and property
Is it a fit
Where it tends to fit.
Often a good fit when
- You have strong credit and savings to put toward the purchase
- You want mortgage insurance that can eventually come off
- You are buying a primary home, second home, or other eligible property
Worth weighing
- With a smaller down payment, PMI adds to your monthly payment
- Credit and debt guidelines can be less flexible than some government loans
- Amounts above conforming limits move into jumbo territory
- Another loan type may cost less in your situation
Costs and considerations
Understand PMI before you commit.
Mortgage insurance is the part most people ask about. Knowing how it ends is as important as knowing how it starts.
Official source
See the current conforming loan limits.
Limits are updated by the Federal Housing Finance Agency and vary by area. Confirm the current figures at the source.
How PMI works
PMI protects the lender, not you. Whether it applies, and what it costs, depends on your down payment and loan details.
Removing PMI
It may be canceled or terminated once applicable equity and other requirements are met. Charles can explain how that would work on your loan.
Down payment and equity
More equity at the start can change whether PMI applies at all.
Conforming limits
The FHFA sets conforming limits each year. Check the official page for the current figures.
The process with Charles
Four steps, one person to call.
- Step 1
Talk with Charles
Share your goals, savings, and timeline.
- Step 2
Compare structures
Look at down payment and mortgage insurance trade-offs.
- Step 3
Apply
Complete the secure online application when you are ready.
- Step 4
Underwriting and closing
Your file is reviewed and Charles keeps you informed.
Common questions.
A conventional loan is not insured or guaranteed by a government agency. Many follow standard conforming guidelines, including annual loan limits.
It depends on your down payment and loan details. Private mortgage insurance, or PMI, commonly applies when the down payment is smaller, and it protects the lender rather than you.
Often, yes. PMI may be canceled or terminated once applicable equity and other requirements are met. Rules vary by loan, and Charles can explain how they would apply to yours.
They are not government-backed, so guidelines, mortgage insurance and costs work differently. The right fit depends on your credit, savings, property and goals.
Yes. The Federal Housing Finance Agency sets conforming loan limits each year. See the official FHFA page linked here for the current figures.
Conventional loans can be an option for several property types, including second homes, subject to guidelines. Ask Charles about your situation.
Talk it through with Charles.
No pressure and no commitment. Any loan is subject to credit approval and underwriting guidelines.
Keep exploring
Explore other loan options.
- First-Time HomebuyersThe plain-language starting point for your first purchase.
- RefinanceRate-and-term or cash-out, and how to weigh the real costs.
- FHA LoansGovernment-insured, with flexible credit and down payment guidelines.
- VA LoansAn earned benefit for eligible veterans, service members and some surviving spouses.
- Jumbo LoansFor loan amounts above conforming limits, with stricter guidelines.
- Mortgage CalculatorTest your own numbers before you talk.