Veterans Direct Mortgage

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Conventional Home Loans

The most common mortgage in America — flexible down payments starting at 3%, mortgage insurance you can cancel once you have 20% equity, and pricing that rewards strong credit. We shop it across 220+ wholesale lenders so the market competes for your loan.

3%

Minimum Down

Cancellable

Mortgage Insurance

$832,750

2026 Conforming Limit

1–4 Units

Property Types

How conventional loans work

Conventional loans follow Fannie Mae and Freddie Mac guidelines rather than a government guarantee. That means pricing is driven by credit score and down payment: the stronger your profile, the better your rate. First-time buyers can qualify with as little as 3% down, and anyone can use 5% down programs.

Below 20% down you'll carry private mortgage insurance — but unlike FHA's insurance, conventional PMI cancels once you reach 20–22% equity, through payments or appreciation. On a typical loan that's hundreds a month that eventually goes away on its own.

Why shop it through a broker

Conventional pricing varies more between lenders than any other program — the same borrower can see meaningfully different rates across the wholesale market on the same day. A bank shows you its one rate sheet; we run your scenario across 220+ lenders and hand you the winner.

Straight Answers

Conventional Loans: what buyers ask

What credit score do I need for a conventional loan?

Guidelines start at 620, and pricing improves in tiers as scores rise — 740+ typically sees the best rates. If you're between tiers, we'll tell you exactly what moving one tier is worth in dollars.

How much is PMI and when does it go away?

PMI depends on credit score and down payment — often $50–$250/month on typical loans. It cancels automatically at 22% equity, or on request at 20%, including equity from appreciation with a new valuation.

Can I use a conventional loan for a rental or vacation home?

Yes — conventional is the standard program for second homes and 1–4 unit investment properties, with higher down payment requirements (typically 10–25% depending on occupancy and units).

What's the conventional loan limit in 2026?

The baseline conforming limit is $832,750 for a single-family home, higher in designated high-cost counties. Above that, you're in jumbo territory — which we also do.

Conventional or FHA — which is better for me?

Strong credit and 5%+ down usually favors conventional (cancellable PMI, better pricing). Thinner credit or 3.5% down often favors FHA. We price both side by side so the math decides, not a sales pitch.

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Other programs worth pricing

Serving in the military, or served? The VA loan is our specialty — $0 down, no PMI, and usually unbeatable if you qualify.

220+ lenders. One application. Your best deal.