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Conventional mortgages are not insured by FHA or guaranteed by VA or USDA. They can offer flexible terms for qualifying borrowers and many property types.
Conforming loans meet Fannie Mae or Freddie Mac purchase standards and stay within the applicable county loan limit. For 2026, the one-unit baseline conforming limit is $832,750, while the one-unit ceiling in the highest-cost continental areas is $1,249,125. County and property-unit limits vary, so use the official FHFA or Fannie Mae lookup before structuring the loan.
Twenty percent is not always required. Certain qualifying one-unit primary-residence conventional programs can permit as little as 3% down, while other common conventional purchase structures may begin at 5% down. Eligibility, occupancy, income limits and first-time-buyer rules vary, and mortgage insurance generally applies when the first-mortgage loan-to-value ratio exceeds 80%.
A loan above the applicable conforming limit is generally jumbo or otherwise non-conforming. Jumbo financing has a smaller, less standardized secondary market and is more dependent on individual bank and investor appetite. Rates are not always higher, but credit, reserve, down-payment, property and documentation requirements can be more restrictive. Staying within the conforming limit can provide more standardized execution when the purchase structure and borrower finances make that sensible.
Review the rate, annual percentage rate, payment, mortgage insurance, cash to close, loan term and how long you expect to keep the property. A lower down payment preserves cash but can change mortgage insurance, pricing and the total monthly obligation.
General information is useful. A mortgage professional can help you evaluate the facts that apply to you.
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