Explore conventional mortgage options with as little as 3% down for eligible buyers. Compare rates, requirements, and mortgage insurance options.
A conventional mortgage can help you buy a home, finance a second home or investment property, or refinance. Qualified borrowers may buy a primary residence with as little as 3% down, and private mortgage insurance (PMI) can be canceled as you build equity.
Oceans Mortgage helps you compare conventional loan options based on your credit, income, down payment and long-term goals.
Conventional Loans Qualifier
A conventional mortgage is a home loan that is not insured or guaranteed by a federal government agency, such as the FHA or VA loans.
Conventional mortgages can have fixed or adjustable interest rates and are commonly available with 15-, 20- and 30-year repayment terms.
Many conventional loans follow underwriting standards established by Fannie Mae and Freddie Mac. These are known as conforming conventional loans.
Conventional financing is available for home purchases, rate-and-term refinances and cash-out refinances, subject to program eligibility.
Qualification depends on the loan program, lender and borrower profile.
Down Payment
Eligible borrowers may qualify for a conventional mortgage with as little as 3% down. Other programs require 5% or more, particularly for second homes and investment properties.
Credit Score
Credit requirements vary by lender, loan program and underwriting method. A higher credit score may improve available interest rates and mortgage insurance pricing.
Debt-to-Income Ratio
Lenders evaluate monthly debt obligations relative to qualifying income. Automated underwriting findings, available reserves and other financial factors help determine the maximum allowable ratio.
Income and Employment
Most conventional mortgages require documentation of stable, qualifying income. Self-employed borrowers may have additional documentation requirements.
Mortgage Insurance
Private mortgage insurance is generally required when financing exceeds 80% of the property’s value or purchase price, as applicable.
Unlike FHA mortgage insurance, conventional PMI may be canceled once the borrower meets applicable requirements.
Conventional mortgages offer several advantages:
The best loan program depends on the borrower’s financial circumstances, property type and expected ownership period.
The Federal Housing Finance Agency establishes annual conforming loan limits for mortgages eligible for purchase by Fannie Mae and Freddie Mac.
For 2026, the baseline conforming loan limit for a one-unit property is $832,750 in most U.S. counties.
In designated high-cost areas, the limit may be higher, up to $1,249,125 for a one-unit property in the contiguous United States.
Limits vary by county and property unit count.
Mortgages exceeding the applicable conforming loan limit are generally classified as jumbo loans. Jumbo loans may still be conventional mortgages, but they typically follow different underwriting and financing requirements.
Both conventional and FHA mortgages can help qualified borrowers purchase a home with a relatively small down payment.
Conventional financing may be attractive to borrowers with stronger credit, particularly when mortgage insurance costs are considered.
FHA financing may offer advantages for certain borrowers with lower credit scores or different qualification needs.
One important difference is mortgage insurance.
Conventional PMI may be canceled when eligibility requirements are met. FHA mortgage insurance generally follows different rules and may remain in place for the full loan term, depending on the original loan-to-value ratio and mortgage term.
Comparing both programs can help borrowers identify the most suitable financing option.
Yes. Certain conventional mortgage programs permit eligible borrowers to purchase a primary residence with as little as 3% down. Eligibility depends on the specific program and borrower qualifications.
There is no single credit score requirement that applies to every conventional mortgage. Requirements depend on the loan program, underwriting method and lender.
Neither program is automatically better. Conventional mortgages may offer advantages for borrowers with stronger credit, while FHA loans may provide more flexibility for certain borrower profiles. Compare the total financing costs and qualification requirements.
Yes. Conventional PMI may be canceled when applicable requirements are satisfied. Federal law provides cancellation and termination protections for many conventional mortgages.
Yes. Conventional financing is available for eligible investment properties. Down payment, reserve and underwriting requirements generally differ from those for primary residences.
Not necessarily. Rates depend on market conditions, credit qualifications, loan structure and lender pricing. Borrowers should compare the interest rate, APR, mortgage insurance and total financing costs.
Oceans Mortgage offers conventional financing for qualified borrowers purchasing or refinancing residential property.
We can help you evaluate available loan terms, down payment requirements, mortgage insurance and closing costs.
Complete our simple Conventional Loans Qualifier
Qualifying for a conventional mortgage depends on several factors, including your credit history, income, existing debts, down payment, and overall financial profile. Eligible borrowers may qualify with as little as 3% down, while those with stronger credit and larger down payments may benefit from more competitive interest rates and lower mortgage insurance costs. At Oceans Mortgage, we help you compare available loan programs and identify financing options that fit your financial goals.
Mortgage rates change every day, and your rate will vary based on your location, finances, and other factors. Get your FREE customized rate comparison below:
