Conventional Loans 2026: The Ultimate Guide
The most popular mortgage type in America. Learn about requirements, PMI, conforming limits, and how to get the best rate on your conventional loan.
Compare Conventional RatesWhat Is a Conventional Loan?
A conventional loan is a mortgage not insured by a government agency, following Fannie Mae or Freddie Mac guidelines. It's the most common mortgage type, accounting for ~70% of all home loans. Requires 3-20% down payment, 620+ credit score, and PMI is removable once you reach 20% equity.
Conventional Loan Requirements 2026
To qualify for a conventional loan in 2026, you need a minimum credit score of 620, a down payment of 3-20%, and a debt-to-income ratio below 45%. Better credit scores (740+) get significantly lower rates and PMI costs.
Conventional vs FHA vs VA: Quick Comparison
Conventional loans are best for borrowers with 700+ credit scores and 5-20% down payment, since PMI can be cancelled. FHA is better for lower credit. VA offers $0 down for veterans.
| Feature | Conventional | FHA | VA |
|---|---|---|---|
| Down Payment | 3-20% | 3.5% | 0% |
| Credit Score | 620+ | 580+ | 620+ |
| PMI/MIP | Removable at 20% | Life of loan | None |
| Loan Limit | $766,550 | $472,030-$1.15M | No limit* |
| Best For | Good credit, 5%+ down | Lower credit, 3.5% down | Veterans, $0 down |
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Get Pre-Approved NowConventional Loan FAQ
What is a conventional loan?
A mortgage not backed by a government agency, following Fannie Mae/Freddie Mac guidelines. The most common loan type in America (~70% of mortgages).
What credit score do I need?
Minimum 620, but 740+ gets the best rates. Each 20-point increase can save you 0.125-0.25% on your rate.
When can I remove PMI?
Request removal at 80% LTV (20% equity). Automatically cancelled at 78% LTV. This is a major advantage over FHA.
What is the conforming loan limit for 2026?
$766,550 in most areas, up to $1,149,825 in high-cost markets.
Related Conventional Loan Guides
Conventional vs FHA 2026: Which Saves Money?
Real cost comparison over 30 years
Read guide →Conforming Loan Limits 2026
New limits and high-cost area exceptions
Read guide →PMI Removal Guide 2026
How to remove PMI and save $200+/month
Read guide →Conventional Loan Requirements 2026
Credit, income, DTI, and documentation requirements
Read guide →Best Mortgage Rate Strategies 2026
How to get the lowest conventional rate
Read guide →Credit Score Impact on Rates
How your score affects your conventional rate
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