Conventional/Conforming Loans

A Flexible, Competitive Option for Today’s Homebuyers

Conventional loans are one of the most popular mortgage options — offering flexibility, competitive rates, and long-term cost advantages for many buyers.

At Let’s Talk Mortgages, we often recommend conventional loans for clients with strong financial profiles or those looking for more control over their loan structure. Whether you’re purchasing your first home, upgrading, or investing, this program can be a great fit.

What Is a Conventional Loan?

A conventional loan is a mortgage that is not backed by a government agency like FHA or VA.

Most conventional loans follow guidelines set by Fannie Mae and Freddie Mac. These are often referred to as “conforming loans,” meaning they meet certain loan limits and qualification standards.

Because they are not government-insured, conventional loans may have slightly stricter requirements, but they also offer greater flexibility and potential long-term savings.

Who Conventional Loans Are Great For

Conventional loans are often a strong choice for:

• Buyers with good to excellent credit
• Borrowers with stable income and employment
• Those who can afford a moderate to larger down payment
• Homebuyers looking to avoid long-term mortgage insurance
• Buyers purchasing primary homes, second homes, or investment properties

Basic Conventional Loan Guidelines

While more flexible in some ways, conventional loans do have standard qualification considerations:

• Credit score: Typically higher than FHA requirements
• Down payment: Minimum can vary from 3% to 20%, depending on buyer circumstances.
• Loan limits: Must fall within conforming loan limits (for standard programs)
• Mortgage insurance: Required if putting less than 20% down (but removable)

Every borrower is different, and we’ll help you understand how these guidelines apply to your situation.

What Are Conforming vs. Non-Conforming Loans?

You may hear the terms “conforming” and “non-conforming” when discussing conventional loans.

• Conforming loans: Meet standard loan limits and guidelines set by Fannie Mae and Freddie Mac
• Non-conforming loans: Fall outside those limits (often referred to as jumbo loans)

Most buyers fall into the conforming category, but we’ll help you determine what applies to you.