What is a conventional loan?
A conventional loan is a mortgage that is not insured or guaranteed by a government agency such as FHA, VA or USDA. Most conventional loans follow Fannie Mae or Freddie Mac guidelines and conforming loan limits.
Conventional · Written by Anil Aggarwal, Realtor® | Mortgage Loan Officer · Updated August 8, 2026
Conventional loans allow down payments as low as 3% for eligible borrowers, with private mortgage insurance required above 80% loan-to-value.
Loans above the conforming limit are often called jumbo loans and follow different guidelines and pricing.
For 2026 the baseline conforming limit for a one-unit property is $832,750, with a higher ceiling in designated high-cost areas, per FHFA.
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Educational only: The calculators and information on this website are for educational and illustrative purposes only. Results are estimates based on the information and assumptions entered and are not a loan offer, commitment to lend, financial advice or guarantee of eligibility, rates, costs or savings. Actual loan terms, rates, fees, mortgage insurance and qualification requirements vary by borrower, property, lender and loan program. Speak with a licensed mortgage professional for personalized information.