What is a conventional loan?

A conventional loan is a mortgage that is not backed by a government agency (unlike FHA, VA, or USDA loans). Most conventional loans conform to guidelines set by Fannie Mae and Freddie Mac, which set loan limits and underwriting standards.

What is the conventional loan limit for 2024?

The 2024 conforming loan limit is $766,550 for most of the country. In high-cost areas (like parts of California, New York, and Hawaii), the limit is higher, up to $1,149,825. Loans above these limits are called jumbo loans.

Is PMI required on a conventional loan?

PMI (private mortgage insurance) is required when the down payment is less than 20%. PMI is cancelled automatically when you reach 22% equity (based on the original purchase price), and you can request cancellation at 20%. PMI costs vary by credit score and LTV.

What credit score is needed for a conventional loan?

Our conventional program requires a minimum credit score of 680. Higher credit scores result in lower PMI rates and better loan pricing.

Conventional Loan | MtgPro.ai

Conventional Loan

680+ credit. Up to 80% LTV cash out, 95% LTV rate and term

Conventional loans conform to Fannie Mae and Freddie Mac guidelines and cover most purchase scenarios, with loan limits up to $766,550 (and higher in high-cost areas).

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Conventional loans conform to Fannie Mae and Freddie Mac guidelines and cover most purchase scenarios, with loan limits up to $766,550 (and higher in high-cost areas).

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Key Advantages

Why Choose a Conventional?

Here's what sets this loan product apart and who it works best for.

Low Down Payment

Put as little as 3% down for first-time buyers, or 5% for repeat buyers.

No Upfront MIP

Unlike FHA loans, conventional loans have no upfront mortgage insurance premium.

PMI Can Be Removed

Once you reach 20% equity, PMI can be cancelled, which reduces your monthly payment.

High Loan Limits

Standard conforming limit of $766,550 in most areas, with higher limits in high-cost counties.

Calculator

Purchase Calculator

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Home Price$500K

$100K$2.0M

Down Payment10%

3%25%

Interest Rate

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Calculator results are estimates only and do not constitute a loan offer, pre-approval, or commitment to lend. Actual terms may vary.

Eligibility

Qualification Requirements

General guidelines for Conventional Loan eligibility. Requirements vary by lender and scenario.

Requirement	Guideline
Minimum Credit Score	680+
Minimum Down Payment	3% (first-time buyers) / 5% (repeat buyers)
Max LTV	80% LTV cash out, 95% LTV rate and term
PMI Required	If down payment < 20%
Loan Limit	$766,550 (standard); higher in high-cost areas
Debt-to-Income	Typically ≤ 45%

These are general guidelines only. Specific program requirements may vary. Contact us for a personalized review of your scenario.

FAQ

Frequently Asked Questions

Common questions about Conventional Loan loans.

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West Capital Lending, Inc. is an Equal Housing Lender. We do not discriminate on the basis of race, color, religion, national origin, sex, handicap, or familial status.

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FHA loans are insured by the Federal Housing Administration and designed for borrowers with lower credit scores or limited down payments. A popular choice for first-time homebuyers.

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Veterans and active duty: 0% down, no PMI, up to 100% LTV

VA loans are one of the most powerful mortgage benefits available to eligible veterans, active-duty service members, and surviving spouses. No down payment and no PMI.

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Get pre-approved for your next home

Whether this is your first home or your fifth, a purchase loan gets you across the finish line. Take the quiz, then continue to the full application and fill it out thoroughly, so we can get you the most accurate pre-approval and the highest qualification.

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