What Is a Conventional Loan?
What Is a Conventional Loan?
How Conventional Loans Work
At a Glance
Why Buyers Choose Conventional
Conventional vs. Other Loan Types
Keep Exploring
Related Blog Posts
Frequently Asked Questions
Get Pre-Approved for a Conventional Loan
A conventional loan is a home mortgage that is not insured or guaranteed by a federal agency like FHA, VA, or USDA. Most U.S. homebuyers use one — and with the right credit and down payment, it can be the most cost-effective way to buy.
Conventional mortgages are originated by banks, credit unions, and mortgage lenders, then often sold to Fannie Mae or Freddie Mac when they meet "conforming" guidelines. That secondary-market support keeps rates competitive and standards consistent nationwide.
You can choose a fixed-rate term (15, 20, or 30 years) or an adjustable-rate mortgage. Monthly payments typically cover principal, interest, taxes, and insurance — plus PMI if your down payment is under 20%.
In 2026, the conforming loan limit for a single-family home is $766,550 in most counties (higher in high-cost areas). Loans above those limits are jumbo mortgages with different underwriting rules.
For borrowers who qualify, conventional financing often wins on long-term cost and flexibility.
Not sure if conventional is the right fit? Compare it with government-backed options we also close every week.
Related guides to help you compare options and move toward pre-approval.
2MG Daily
Recent articles from our blog on conventional loans, credit, and homebuying.
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Know your buying power before you shop. Ryan & Steve can get you pre-approved and average a 20-day close.
- window.open('https: Conventional Overview How Conventional Loans Work Conventional mortgages are originated by banks, credit unions, and mortgage lenders, then often sold to Fannie Mae or Freddie Mac when they meet "conforming" guidelines. That secondary-market support keeps rates competitive and standards consistent nationwide. You can choose a fixed-rate term (15, 20, or 30 years) or an adjustable-rate mortgage. Monthly payments typically cover principal, interest, taxes, and insurance — plus PMI if your down payment is under 20%. In 2026, the conforming loan limit for a single-family home is $766,550 in most counties (higher in high-cost areas). Loans above those limits are jumbo mortgages with different underwriting rules. At a Glance Why Buyers Choose Conventional For borrowers who qualify, conventional financing often wins on long-term cost and flexibility. Conventional vs. Other Loan Types Not sure if conventional is the right fit? Compare it with government-backed options we also close every week. Feature Conventional FHA VA Min. down 3% 3.5% $0 Credit flexibility Moderate–strong More flexible Flexible for eligible veterans Mortgage insurance PMI (cancellable) MIP (often life of loan) No monthly MI Who can use Most buyers Primary residence Eligible service members & veterans FHA Loans → VA Loans → Conventional overview → Keep Exploring Related guides to help you compare options and move toward pre-approval. 2MG Daily Related Blog Posts Recent articles from our blog on conventional loans, credit, and homebuying. {blogLoading ? ( ) : blogError ? ( Try Again