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Conventional Loans
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INTRODUCTION
What Is a Conventional Loan?
A Conventional loan Virginia is a mortgage not backed by a government agency. Unlike FHA, VA, or USDA loans, conventional loans follow guidelines set by Fannie Mae and Freddie Mac. They are the most widely used home loan in the United States. Down payments start at 3%. The minimum credit score on most programs is 620. PMI is required below 20% down and cancels at 78% LTV automatically.
You have been on Zillow for months. You know what you want. What you do not know is whether the rate your bank quoted you is actually the best one available.
Here is what most homebuyers never find out: the conventional loan rate you receive depends almost entirely on which lender you use. Your bank has one rate. Access Financial, as a mortgage broker with access to 100+ institutional lenders, has the entire market. On a $400,000 loan, a 0.25% rate difference costs you $21,600 over 30 years.
This guide covers conventional loan requirements, 2026 loan limits, down payment options, PMI rules, and how the lender you choose changes the number on your mortgage statement every month for the next 30 years.
Conventional loans come in two categories. Conforming loans sit at or below the Fannie Mae and Freddie Mac annual limits. Non-conforming loans exceed those limits and are called jumbo loans. This page covers conforming conventional loans.
CONVENTIONAL LOAN REQUIREMENTS 2026
Conventional Loan Requirements for 2026
What do I need to qualify for a conventional loan in 2026?
To qualify for a conventional loan in 2026 you need a minimum 620 credit score, a debt-to-income ratio (DTI) at or below 45–50%, documented income through W2s or tax returns, and a down payment of at least 3%. The best rates go to borrowers with a 720+ credit score and 20% down. Access Financial shops your file across 100+ lenders to find the one whose guidelines best fit your profile.
What do I need to qualify for a conventional loan in 2026?
2026 Conforming Loan Limits
What is the conventional loan limit for 2026?
The standard conforming loan limit for 2026 is $806,500 for a single-family home in most US counties. In high-cost areas including Northern Virginia, DC Metro, and most of California, the limit rises to $1,209,750. Loans above these limits are jumbo loans and follow different underwriting guidelines through portfolio lenders.
| Property Type | Standard Limit | High-Cost Limit |
|---|---|---|
| 1-Unit Single-Family | $806,500 | $1,209,750 |
| 2-Unit Duplex | $1,032,650 | $1,548,975 |
| 3-Unit Triplex | $1,248,150 | $1,872,225 |
| 4-Unit Quadruplex | $1,551,250 | $2,326,875 |
Conventional Loan Down Payment
What is the minimum down payment for a conventional loan?
The minimum down payment for a conventional loan is 3% through Fannie Mae’s Conventional 97 or Freddie Mac’s Home Possible program. A 5% down payment is available to all buyers. PMI is required below 20% down and cancels automatically when the loan reaches 78% LTV under federal law. Unlike FHA mortgage insurance, conventional PMI does not stay for the life of the loan.
What do I need to qualify for a conventional loan in 2026?
| Down Payment | PMI Required? | Best For |
|---|---|---|
| 3% (Conventional 97) | Yes | First-time buyers, income limits may apply |
| 5% | Yes | Strong credit buyers wanting lower payment |
| 10% | Yes, lower premium | Buyers with solid savings and good credit |
| 20% | No PMI ever | Buyers who want the lowest total monthly cost |
THE 3 QUESTIONS CONVENTIONAL BUYERS ASK MOST
Conventional beats FHA for most borrowers with a 620+ credit score because conventional PMI cancels at 80% LTV while FHA mortgage insurance stays for the life of the loan when the down payment is below 10%. That difference can cost $20,000 or more over the loan. FHA wins when your credit score is below 660 or your DTI is above 45%.
A 760 or above credit score puts you in the best rate tier on conventional loans. At 720, you access standard competitive rates. Below 680, rate premiums and higher PMI costs apply. Every 20-point improvement in your score changes your rate tier. Access Financial reviews your credit as part of every free pre-approval and flags quick improvement opportunities before you lock.
Pre-approval at Access Financial takes 24 hours for qualified borrowers who submit complete documents. Full loan approval from signed purchase contract through appraisal, underwriting, and closing typically takes 30–45 days. Access Financial orders appraisals on day one of contract and tracks files daily to protect your close timeline.
Why Your Lender Choice Matters More Than You Think
Conventional loans represent approximately 70% of all US mortgage originations according to the Urban Institute Housing Finance Policy Center 2024 report. The average conventional borrower has a credit score of 755 and a down payment of 19%. Yet CFPB research shows that borrowers who received only one rate quote paid an above-market rate on over 30% of transactions. A single additional lender comparison saved the average borrower $1,500 over the loan life. Getting five quotes saved $3,000 or more.
Of all US mortgages are conventional loans
30-year cost of accepting a 0.25% above-market rate on a $400,000 loan
Savings from getting 5 rate quotes vs 1 —
Frequently Asked Questions
Yes. Self-employed borrowers qualify using 2 years of tax returns. However, significant write-offs may reduce qualifying income.
Conventional full-documentation loans use 2 years of Schedule C or business return income. If write-offs reduce taxable income below the qualification threshold, a bank statement loan is often the better path for self-employed borrowers. Access Financial evaluates both conventional full-doc and bank statement qualification
Conventional 97 is a Fannie Mae program allowing first-time buyers to purchase with 3% down on a conventional loan.
The Conventional 97 requires at least one borrower to be a first-time buyer — defined as no primary residence ownership in the last 3 years. Minimum 620 credit score. PMI is required but cancels at 80% LTV, unlike FHA MIP which often stays for the loan life. Freddie Mac's Home Possible is a similar alternative. Access Financial runs both alongside FHA for every first-time buyer inquiry.
Yes. Conventional loans finance investment properties up to 10 financed properties per Fannie Mae guidelines.
Investment properties require 15–25% down on conventional. Rates run 0.5–0.75% above primary residence rates. At 10 financed properties, Fannie Mae guidelines no longer apply and DSCR or portfolio programs take over. Access Financial originates both conventional investment loans and DSCR programs for investors who have exceeded the 10-property cap.
FHA loans accept a 580 credit score with 3.5% down. VA loans have no official minimum — most lenders require 580 or above. Conventional loans typically need 620–640. Bank statement and Non-QM programs can go lower depending on compensating factors like a larger down payment or strong reserves. A free consultation confirms exactly where you stand.
The interest rate is what you pay on the loan balance. APR adds all fees and expresses the true annual cost as a percentage.
APR is always higher than the interest rate. When comparing conventional loan offers from multiple lenders, compare APR rather than the stated interest rate alone. A lower rate with higher origination fees may carry a higher APR than a slightly higher rate with minimal fees. Access Financial discloses all fees in a Loan Estimate within 3 business days of app
Yes. Virginia buyers qualify for the Fannie Mae Conventional 97 program with as little as 3% down. In high-cost counties like Fairfax and Loudoun, the 2026 conforming limit reaches $1,209,750, so most buyers can avoid jumbo loans. Access Financial is licensed in Virginia and shops all 3%-down conventional programs across 100+ lenders.
A VA loan is available only to eligible veterans and active-duty military and requires no down payment or PMI. A conventional loan in Virginia is available to all borrowers with a 620+ credit score and starts at 3% down. For Virginia's large military population — particularly near bases like Quantico, Fort Belvoir, and Joint Base Langley-Eustis — comparing both options is worth doing before you lock.