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Conventional Loans

Conventional loans are the most popular mortgage type because they often carry lower interest rates and fewer fees. They're a great option for people with good credit and a larger down payment.

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What is a conventional loan?

Unlike government-backed loan types, such as FHA and VA, conventional loans are offered by banks or other private lenders and may be backed by government-sponsored enterprises such as Fannie Mae or Freddie Mac. There are two types of conventional loans: conforming and non-conforming. Conforming loans follow Fannie Mae or Freddie Mac guidelines, while non-conforming loans, such as jumbo loans, do not. These guidelines are often quite specific, and can involve everything from minimum credit score and limits on loan size, to property type restrictions.

For most counties, conforming loan limits are:

Single Family

for a single-family home or residence

$806,500

Duplex

for a 2-unit home

$1,032,650

Triplex

for a 3-unit home

$1,248,150

Fourplex

for a 4-unit home

$1,551,250

For Alaska, Hawaii and other higher-cost real estate markets, like San Francisco and New York City, conforming loan limits are:

Single Family

for a single-family home or residence

$1,209,750

Duplex

for a 2-unit home

$1,548,975

Triplex

for a 3-unit home

$1,872,225

Fourplex

for a 4-unit home

$2,326,875

Because these loan limits can differ from county to county, you should check the to see your county’s limits.

Benefits

Up to 95% financing may be available with Private Mortgage Insurance (PMI)

Usually requires less paperwork than government-backed loans

Offers fixed and adjustable rate mortgage options

Requirements

Down payment of at least 20% if you want to avoid PMI

Some lenders may require a minimum credit score of 620

Conforming loan limits can vary from county to county

Explore other loan options

Jumbo loans

For people looking at homes in higher price ranges and in higher-cost housing markets.

Find out more about jumbo loans

Federal Housing Administration (FHA) loans

Helpful if you have a lower down payment, are self-employed or don’t qualify for a conventional loan.

Find out more about FHA loans

Veterans Affairs (VA) Loans

Offered to U.S. servicemembers, veterans and military spouses, and are guaranteed by the Department of Veterans Affairs.

Find out more about VA loans

Related Topics

Fixed vs. Adjustable mortgage rates

Choosing the right type of loan for your needs is an important decision in house-buying.

Find out what affects mortgage rates

Your credit score, the type of rate you choose and your location make a difference.

Calculate how much you should borrow

Use our simple home loan amount calculator to figure out how much you can borrow for a loan.

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