What Is a Conventional Loan? | The 2 Mortgage Guys

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• window.open('https: Conventional Overview How Conventional Loans Work Conventional mortgages are originated by banks, credit unions, and mortgage lenders, then often sold to Fannie Mae or Freddie Mac when they meet "conforming" guidelines. That secondary-market support keeps rates competitive and standards consistent nationwide. You can choose a fixed-rate term (15, 20, or 30 years) or an adjustable-rate mortgage. Monthly payments typically cover principal, interest, taxes, and insurance — plus PMI if your down payment is under 20%. In 2026, the conforming loan limit for a single-family home is $766,550 in most counties (higher in high-cost areas). Loans above those limits are jumbo mortgages with different underwriting rules. At a Glance Why Buyers Choose Conventional For borrowers who qualify, conventional financing often wins on long-term cost and flexibility. Conventional vs. Other Loan Types Not sure if conventional is the right fit? Compare it with government-backed options we also close every week. Feature Conventional FHA VA Min. down 3% 3.5% $0 Credit flexibility Moderate–strong More flexible Flexible for eligible veterans Mortgage insurance PMI (cancellable) MIP (often life of loan) No monthly MI Who can use Most buyers Primary residence Eligible service members & veterans FHA Loans → VA Loans → Conventional overview → Keep Exploring Related guides to help you compare options and move toward pre-approval. Related Calculators Run the numbers before you apply — then get a real pre-approval from Ryan or Steve. 2MG Daily Related Blog Posts Recent articles from our blog on conventional loans, credit, and homebuying. {blogLoading ? ( ) : blogError ? ( Try Again
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