Pros
- Down payments from 3% for some first-time buyer programs
- Mortgage insurance can be removed once you have enough equity
- Works for primary homes, second homes and investment properties
Cons
- Stricter credit requirements than FHA
- Mortgage insurance costs more with lower credit scores
Good to know
- For 2026 the conforming loan limit for a one-unit home is $832,750 in most of the US, and up to $1,249,125 in high-cost areas.
- You can ask to cancel PMI when your balance reaches 80% of the home’s original value; it ends automatically at 78% if you are current on payments.
- Loans above the conforming limit are jumbo loans.
Loan rules and limits change. Confirm current terms with lenders. Not financial advice.
Frequently asked questions
What is the minimum down payment on a conventional loan?
Some programs allow 3% for qualifying buyers, often first-time buyers. Many lenders want 5% or more otherwise.
Questions from readers
Question about Conventional loan? Ask here.