Conventional loans
Conventional loans, explained
Conventional loans are the most common type of mortgage. They aren't insured or guaranteed by a government agency, and they can be used for primary homes, second homes and more.
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- Options for primary homes, second homes and more
- Plain-language answers on PMI
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Ask about conventional loans
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What a conventional loan is
A conventional loan is a mortgage that isn't insured or guaranteed by a government agency. Most are "conforming" loans: they follow Fannie Mae and Freddie Mac guidelines and stay within the yearly loan limit set by the Federal Housing Finance Agency (FHFA). See the current FHFA conforming loan limits (opens in a new tab).
Who conventional loans often fit
- Buyers with steady, documented income
- Buyers with solid credit history
- Buyers of a second home
- Homeowners refinancing out of an FHA loan to drop mortgage insurance
About private mortgage insurance (PMI)
Many conventional loans include PMI until you've built enough equity. Under the federal Homeowners Protection Act, you can ask to cancel PMI once your balance reaches a set level, and it ends automatically at a later point if you're current on payments. Your PMI disclosure shows the dates. The CFPB explains the rules: When can I remove PMI? (opens in a new tab)
Conventional, FHA or jumbo?
| Feature | Conventional | FHA | Jumbo |
|---|---|---|---|
| Backing | Not insured or guaranteed by a government agency | Insured by the FHA | Not insured or guaranteed by a government agency |
| Loan size | Up to the yearly FHFA limit | Up to the county FHA limit | Above the conforming limit |
| Mortgage insurance | PMI on many loans, under federal cancellation rules | Upfront and annual premiums | Varies by lender |
| Property | Primary homes, second homes and more | A home you'll live in | Primary homes, second homes and more |
General program features, not an offer. Limits: FHFA conforming loan limits (opens in a new tab) and HUD FHA mortgage limits (opens in a new tab).
Home loans are offered only in states where Iron Hill Mortgage is licensed. Check our licensing page or NMLS Consumer Access for where we're licensed. Iron Hill Mortgage is a private company. We are not a government agency, and we are not endorsed by HUD, the FHA or the U.S. Department of Veterans Affairs.
How it works
Four clear steps. You decide at every one.
Tell us your goal
Book a call, text us, or fill out the short form. A few minutes is enough to start.
We look at your options
We review your situation and compare loan options that fit it.
You get it in writing
When you apply, you get an official Loan Estimate with the real costs and terms.
We guide you to closing
We keep you, the title company and your agent, if you have one, updated through closing.
Common questions
What is a conventional loan?
It's a mortgage that isn't insured or guaranteed by a government agency. Most conventional loans follow Fannie Mae and Freddie Mac guidelines and are called conforming loans.
What are conventional loan requirements?
Usually solid credit, steady documented income, debts that fit the program, and funds for closing. Requirements depend on your full file and the property.
When does PMI go away?
Under the federal Homeowners Protection Act, you can ask to cancel PMI once you've paid your balance down to a set level, and it ends automatically at a later point if you're current on payments. Your PMI disclosure shows the dates. The CFPB explains the rules.
What's the conforming loan limit?
It's the largest loan Fannie Mae and Freddie Mac will buy. FHFA sets it each year, and it's higher in some high-cost areas. Loans above it are jumbo loans.
Conventional or FHA: which costs less?
With strong credit, conventional often costs less over time. FHA can be easier to qualify for. We'll compare both with your numbers.
Can I use a conventional loan for a second home?
Yes, conventional loans can be used for second homes, with their own requirements. Buying a rental? See our investor loans.
Keep exploring
FHA loans
Compare with FHA.
Learn more: FHA loansJumbo loans
For higher-priced homes.
Learn more: Jumbo loansMarkets we serve
Local pages with housing data and the loans that fit each market.
Talk it through with our team
Book a short call, or text us your question. We'll explain your options in plain language.
Call or text (615) 949-4780 · Answered 24/7 for booking
Booked calls are with a member of the Iron Hill team. Home loans are handled by a licensed loan officer.