A conventional loan is the most common mortgage type in the U.S. — not backed by any government agency, which means stricter credit requirements but fewer fees for well-qualified buyers. Enter your numbers below to see your complete monthly payment including taxes and insurance, and how much total interest you'll pay over the life of the loan.
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What credit score do I need for a conventional loan?
Most lenders require a minimum 620 credit score for a conventional loan, but you'll need 740+ to get the best rates. Fannie Mae's LLPA grid prices risk based on your score — every 20-point tier below 760 adds to your rate.
How much do I need to put down on a conventional loan?
As little as 3% down through programs like Fannie Mae HomeReady or Freddie Mac Home Possible. However, anything below 20% requires PMI (Private Mortgage Insurance), which adds to your monthly payment until you reach 20% equity.
When does PMI go away on a conventional loan?
By law (the Homeowners Protection Act), your lender must cancel PMI when your loan balance reaches 80% of the original purchase price. You can also request cancellation early if your home has appreciated and you pay for a new appraisal.
What is the conventional loan limit in 2025?
The conforming loan limit for 2025 is $806,500 for a single-family home in most areas. High-cost areas (like San Francisco and New York City) have higher limits. Loans above these limits are called jumbo loans and have different requirements.
Is a conventional loan better than an FHA loan?
For buyers with good credit (700+) and 20% down, conventional is almost always cheaper — no upfront MIP fee and no lifelong mortgage insurance. For buyers with lower credit or smaller down payments, FHA can be easier to qualify for, though it carries higher long-term costs.