Conventional loans3% down,insurance that ends.
Conventional loans follow Fannie Mae and Freddie Mac guidelines. With good credit they are often the lowest total cost option, and the mortgage insurance comes off once you reach 20% equity. We compare conventional pricing across our wholesale lenders on every file.
Secure application, about 10 minutes. A licensed loan officer reviews it and reaches out to walk you through your options.
Who Conventional works best for.
A strong fit if
- Your credit score is 700 or higher
- You have 5% or more to put down, or 3% as a first-time buyer
- You want mortgage insurance that comes off as you build equity
- You are buying a second home or an investment property
- Your loan is under $1,249,125 in the DMV
Compare options if
- Your score is under 660. FHA pricing is often better until your credit improves
- You are a veteran or service member. VA usually beats it with 0% down and no monthly insurance
- The loan is above $1,249,125. That is a jumbo loan
- The home is in an eligible rural area and you have no down payment. Look at USDA
Conventional guidelines in plain numbers.
These are the program rules. Each lender can add its own on top, which is why we shop your file across several of them.
| Down payment | 3% for first-time buyers through HomeReady, Home Possible and standard 97% options. 5% for most repeat buyers. 10% for a second home and 15% or more for an investment property. |
|---|---|
| Credit score | Fannie Mae removed its hard 620 floor in November 2025, but most lenders still look for 620+. Pricing improves at every 20 points up to 740+. |
| Loan limit (2026) | $1,249,125 for 1 unit in Prince George's County, DC and Northern Virginia. 2 units: $1,599,375. 3 units: $1,933,200. 4 units: $2,402,625. Most other areas: $832,750 for 1 unit. |
| Private mortgage insurance | Required with less than 20% down, priced by your credit score and down payment. You can ask to remove it when your balance reaches 80% of the original value, and it ends automatically at 78%. |
| Debt to income | Up to 45%, and up to 50% with automated approval and strong compensating factors. |
| Terms | 30, 20, 15 and 10 year fixed rates, plus adjustable rate options. |
| Occupancy | Primary residence, second home or investment property. |
| Property | 1 to 4 unit homes, townhomes and approved condos. |
See what a conventional payment could look like.
Includes estimated PMI when you put less than 20% down. Watch it drop to zero at 20%.
The two loans most buyers compare.
With a score above 700, conventional usually wins on total cost. Below that, FHA can. We price both on every file.
Apply once
One secure application, about 10 minutes.
We price both
Conventional and FHA across our lenders, side by side.
You pick with real numbers
Payment, cash to close and total cost, in plain terms.
Conventional or FHA?
| Feature | FHA | Conventional |
|---|---|---|
| Minimum down | 3.5% | 3% for first-time buyers |
| Credit score | 580+ | Most lenders look for 620+ |
| Upfront insurance | 1.75% of the loan | None |
| Monthly insurance | About 0.55% a year, usually for the life of the loan | PMI priced by credit, ends at 22% equity |
| Second homes and rentals | Primary residence only | Allowed |
Pair Conventional with assistance and bring less to closing.
State, county and DC programs can sit on top of a conventional first mortgage. Each has its own income, price and homebuyer education rules, so we check eligibility before you write an offer.
Maryland Mortgage Program
1st Time Advantage pairs a first mortgage with deferred, 0% interest help: a flat $6,000 or 3% to 5% of the loan. In Prince George's County, Pathway to Purchase adds up to $50,000 for eligible buyers.
Check my eligibilityDC Home Purchase Assistance Program
For loans closing after July 1, 2026, HPAP offers up to $202,000 toward the purchase plus up to $4,000 for closing costs, based on income and household size.
Ask about HPAPConventional questions we hear every week.
Who qualifies for 3% down?
First-time buyers, generally anyone who has not owned a home in the last 3 years. HomeReady and Home Possible also allow 3% down with income limits. Most repeat buyers need 5%.
When does PMI go away?
You can ask your servicer to remove it once your balance reaches 80% of the home's original value, if your payments are current. It ends automatically at 78%. You can also remove it sooner with a new appraisal after your home gains value, under the servicer's rules.
What credit score do I need?
Most lenders look for 620 or higher. Pricing and PMI both improve as your score rises, with the best pricing at 740 and above.
What is the conventional loan limit in the DMV for 2026?
$1,249,125 for a single family home in Prince George's County, Washington DC and Northern Virginia. Above that, the loan is a jumbo.
Should I choose a 30 or 15 year loan?
A 15 year loan has a lower rate and builds equity fast, but the payment is much higher. A 30 year loan keeps the payment low, and you can still pay extra any month. Run both in the estimator above.
Can I use a gift for my down payment?
Yes. Gifts from family are allowed on a primary residence. We will need a signed gift letter and a record of the transfer.
Compare other options.
FHA Loans
3.5% down and flexible credit for buyers with a 580+ score.
ExploreHigher price pointsJumbo Loans
Financing above the 2026 conforming limit of $1,249,125 in the DMV.
ExploreShort-term plansAdjustable Rate
A lower starting rate for buyers who plan to sell or refinance within a few years.
ExploreRefinanceRefinance & Cash-Out
Lower your rate, drop FHA insurance, shorten your term or take cash out.
Explore