Conventional Loan
Mortgage not insured or guaranteed by the federal government. The standard mortgage product, sold to Fannie Mae or Freddie Mac.
Conventional loans are non-government-backed mortgages, typically conforming to Fannie Mae or Freddie Mac guidelines so they can be sold on the secondary market. Down payment as low as 3% (HomeReady, Home Possible) for qualified buyers; 20% removes PMI requirement. Loan amounts up to the county conforming limit ($832,750 in most counties for 2026). Strict DTI (45-50% cap) and standard income documentation.
Related terms
FHA Loan
Government-insured mortgage with low down payment (3.5%) and flexible credit (580+ FICO). Insured by HUD.
Jumbo Loan
Mortgage with loan amount above the county conforming loan limit. Held in lender portfolios or securitized privately.
PMI (Private Mortgage Insurance)
Insurance the borrower pays on conventional loans with less than 20% down, protecting the lender against default loss.
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