How much do I need to put down on a conventional loan?

As little as 3% for eligible buyers through programs like HomeReady and Home Possible. A larger down payment lowers your monthly cost and helps you drop PMI sooner, but it is not required.

What credit score do I need for a conventional loan?

620 is the typical minimum. Stronger credit generally earns better pricing, but every file is reviewed as a whole, including your down payment and debt-to-income.

What is the 2026 conventional loan limit?

The conforming baseline is $832,750 for a one-unit home, rising to $1,249,125 in designated high-cost counties. Above your county's limit, you would need a jumbo loan.

Will I have to pay mortgage insurance?

Only if you put down less than 20%. Conventional PMI can be removed at 80% loan-to-value on request and drops automatically at 78% — unlike FHA, where it often lasts the life of the loan.

Conventional Loan Requirements & 2026 Limits

A conventional loan is the most common way people buy a home, and it is more flexible than most buyers expect. It is not backed by a government agency like FHA or VA, but that does not mean you need 20% down or perfect credit. Here is what conventional loans actually require in 2026.

By Jodie Barber, NMLS #76185 · 6 min read · Updated July 2026

Key takeaways

✦Conventional loans can go as low as 3% down with a 620+ credit score.
✦PMI applies under 20% equity but is removable at 80% LTV and automatic at 78%.
✦The 2026 conforming baseline is $832,750, up to $1,249,125 in high-cost areas.
✦Above your county's limit, you are looking at a jumbo loan.

What makes a loan 'conventional'

A conventional loan is any mortgage that is not insured or guaranteed by a government program such as FHA, VA, or USDA. Most conventional loans are 'conforming,' which means they meet the standards set by Fannie Mae and Freddie Mac — including a maximum loan amount, called the conforming limit.

Because conventional loans follow those shared guidelines, lenders across the country evaluate them in a similar way. That consistency is part of why they tend to offer competitive terms for borrowers with solid credit.

Credit score and down payment

A 620 credit score is the typical starting point for conventional financing, though stronger credit generally earns better pricing. This is one place conventional loans surprise people: you do not need a huge down payment.

Through programs like HomeReady and Home Possible, eligible buyers can put down as little as 3%. A larger down payment lowers your monthly cost and can help you avoid mortgage insurance sooner, but it is not required to get started.

✦As little as 3% down for eligible buyers (HomeReady / Home Possible).
✦620+ credit score is the typical minimum.
✦More down and stronger credit usually mean better pricing.

Debt-to-income (DTI)

Lenders look at your debt-to-income ratio — the share of your monthly gross income that goes toward your future house payment plus other recurring debts like car loans, student loans, and credit card minimums.

There is no single magic number, because DTI is weighed alongside your credit, down payment, and cash reserves. A lower DTI gives you more room, but plenty of buyers qualify with moderate debt loads. If you are not sure where you stand, Jodie can map it out with your real numbers.

Private mortgage insurance (PMI)

If you put down less than 20%, a conventional loan usually includes private mortgage insurance, or PMI. It protects the lender, not you, and it is added to your monthly payment.

The good news is that PMI is temporary. You can request that it be removed once you reach 80% loan-to-value, and by law it drops off automatically at 78%. That is a meaningful difference from FHA, where the mortgage insurance often stays for the life of the loan.

2026 conforming loan limits

For 2026, the conforming baseline limit for a one-unit home is $832,750. In designated high-cost counties — think parts of the Seattle metro or Northern Virginia — the ceiling rises to $1,249,125.

If you need to borrow more than the limit that applies in your county, you move into jumbo-loan territory, which has its own guidelines. For most buyers, though, a conforming conventional loan covers the purchase comfortably.

Frequently asked questions

How much do I need to put down on a conventional loan?: As little as 3% for eligible buyers through programs like HomeReady and Home Possible. A larger down payment lowers your monthly cost and helps you drop PMI sooner, but it is not required.
What credit score do I need for a conventional loan?: 620 is the typical minimum. Stronger credit generally earns better pricing, but every file is reviewed as a whole, including your down payment and debt-to-income.
What is the 2026 conventional loan limit?: The conforming baseline is $832,750 for a one-unit home, rising to $1,249,125 in designated high-cost counties. Above your county's limit, you would need a jumbo loan.
Will I have to pay mortgage insurance?: Only if you put down less than 20%. Conventional PMI can be removed at 80% loan-to-value on request and drops automatically at 78% — unlike FHA, where it often lasts the life of the loan.

Keep reading

What Is PMI, and How Do You Get Rid of It?

Private mortgage insurance explained: what PMI is, when it applies, and exactly how it drops off at 80% and 78% LTV — plus how it differs from FHA's MIP.

What Is a Jumbo Loan? 2026 Limits Explained

A jumbo loan is a mortgage above the conforming limit. Here's when you need one in 2026, the $832,750 and $1,249,125 thresholds, and what lenders expect.

FHA vs. Conventional Loan: Which Is Right for You? (2026)

FHA and conventional loans both help you buy with less than 20% down. Here's how they compare in 2026 on credit, down payment, mortgage insurance, and total cost.