A familiar route with details that still matter.
Conventional financing can take many forms. A loan officer walks through your documentation and goals to connect them to the options available. Without treating a program label as a promise.
What is a conventional loan?
A conventional loan is a mortgage that is not insured by a government agency. Most follow Fannie Mae and Freddie Mac guidelines, generally start at a 620 credit score, and reward stronger credit with better pricing tiers and lower mortgage insurance costs.
Conventional loans are the most common mortgage type in the country. Because no government agency insures the lender, your credit profile carries more weight: pricing generally improves as scores rise through tiers around 680 and 740.
Putting down less than 20% usually means private mortgage insurance, called PMI. Unlike FHA insurance, PMI can be removed once you build enough equity, which is one reason buyers with stronger credit often start conventional or refinance into it later.
Conventional at a glance (2026)
| Credit score | Generally 620 minimum; pricing improves in tiers around 680 and 740 |
|---|---|
| Down payment | As little as 3% for eligible buyers on some Fannie Mae and Freddie Mac programs; 20% avoids PMI |
| Mortgage insurance | PMI required under 20% down, removable as equity grows |
| Loan limit | $832,750 baseline conforming limit for a one-unit home in 2026, including Harris County |
| Property types | Primary homes, second homes, and investment properties |
Who conventional often fits
- Buyers with established credit around 620 and above
- Buyers who want mortgage insurance that can be removed
- Move-up buyers, second-home buyers, and some investors
Frequently asked questions
- What credit score do I need for a conventional loan?
- Generally 620 at minimum under Fannie Mae and Freddie Mac guidelines. Stronger scores unlock better pricing tiers, typically around 680 and again around 740, and can lower PMI costs. A licensed loan officer can show how your score maps to your options.
- Do I need 20% down for a conventional loan?
- No. Eligible buyers can put down as little as 3% on some Fannie Mae and Freddie Mac programs. Putting down less than 20% adds PMI, which can later be removed as you build equity, so the 20% figure is a cost decision rather than a requirement.
- When does PMI come off a conventional loan?
- Under the federal Homeowners Protection Act, you can generally request PMI cancellation at 20% equity, and lenders must terminate it automatically at 22% equity if payments are current. Rising home values can get you there sooner than the original schedule.
- What is the conforming loan limit for 2026?
- The FHFA baseline conforming limit for a one-unit home is $832,750 for 2026, and that figure applies in Harris County and most of Texas. Loans above the limit are jumbo loans, which follow separate lender-set guidelines.
- Is a conventional loan better than FHA?
- Neither is better for everyone. FHA generally opens the door at lower scores and smaller down payments but carries longer-lasting mortgage insurance. Conventional generally rewards stronger credit with removable PMI. The right fit depends on your credit, savings, and plans, which a licensed loan officer can review with you.
Keep reading
- What credit score do you need to buy a house in Texas?
- Jumbo loans
- Can rent and utility payments help you qualify?
Educational content only. This page is not financial, legal, or tax advice, a commitment to lend, or an offer of credit. Program requirements and terms vary by lender and change over time; figures cited reflect the sources below as of the dates noted, and eligibility always depends on your full financial profile. Warens Financial Group, NMLS #2532048. Equal Housing Opportunity.
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