Conventional loans are the most widely used home financing option in the United States — not government-insured, but backed by Fannie Mae and Freddie Mac guidelines. Mortgage-World.com is an independent broker licensed in NJ, CT, and FL shopping 20-plus wholesale lenders to find the lowest conventional loan rates for your credit profile and purchase price.
Conventional loans offer the lowest rates, no upfront mortgage insurance, and flexible terms from 10 to 30 years. Whether you are buying a home or refinancing, we shop 20-plus wholesale lenders across NJ, CT, and FL to find the best conventional loan rate before you commit to anything.
★ Updated June 2026 | Independent Broker | 20+ Wholesale Lenders | Serving NJ, CT & FL Since 2017
Ready to explore conventional loans? We compare 20+ wholesale lenders to find the lowest rate for your credit score, down payment, and loan amount. Get My Conventional Loan Quote — Free
620 Min FICO Score Conventional Loan
3% Min Down Payment First-Time Buyer
45% Max DTI Standard Guidelines
$806,500 2026 Conforming Loan Limit
Conventional Loans — Key Numbers at a Glance | Mortgage-World.com
Your Answer Right Here
What Are Conventional Loans?
Conventional loans are home mortgages not insured or guaranteed by a federal agency like FHA, VA, or USDA. They follow underwriting guidelines set by Fannie Mae and Freddie Mac, which purchase most conventional loans from lenders. Because they are not government-backed, conventional loans require a stronger credit profile — but they reward that with lower rates, no upfront mortgage insurance, and flexibility on property types. According to the CFPB, conventional loans make up the majority of mortgages originated in the U.S. each year. As an independent broker, we shop 20-plus wholesale lenders so you get the best conventional mortgage rate for your profile — not a single bank’s rate sheet.
Program Snapshot
Conventional Loan Options — Which Program Fits Your Goals?
Conventional financing breaks into two main categories: conforming loans within Fannie/Freddie limits, and jumbo loans that exceed them. Key programs at a glance:
Program
Loan Limit (2026)
Min Down Payment
Min FICO
Best For
Standard Conforming
Up to $806,500
3%
620
Most home buyers in NJ, CT, FL
Conforming High Balance
Up to $1,209,750
5%
620
High-cost counties (Bergen, Fairfield)
Conventional 97
Conforming limits
3%
620
First-time or repeat buyers, low down
HomeReady / Home Possible
Conforming limits
3%
620
Low-to-moderate income buyers
Conventional Fixed 15-Year
Conforming limits
5%
620
Faster payoff, lowest total interest
Jumbo Conventional
Above $1,209,750
10%–20%
660
Luxury and high-value properties
Investment Property Conventional
Conforming limits
15%–25%
620
Rental properties, landlords
Visual Guide
Program Tiers — Which One Is Right for You?
The right conventional home loan depends on your down payment, credit score, and loan amount. Here is a visual overview of how the main program tiers stack up:
Conventional Loan Programs — 2026 guidelines. Down payments and loan limits vary by program, county, and property type.
Full Guidelines
Conventional Loan Requirements — Credit, Down Payment & Income
Fannie Mae and Freddie Mac set the guidelines our wholesale lenders underwrite to. Here are the key requirements for 2026:
● Conventional Loan Credit Score Requirements
Minimum FICO is 620. Borrowers between 620 and 679 face higher loan-level price adjustments. Scores above 740 get the best pricing. Fannie Mae publishes full LLPA tables. Below 620, an FHA loan starting at 500 may be the better fit.
● Down Payment for a Conventional Loan
Minimum 3% down for first-time buyers (Conventional 97 or HomeReady). Most buyers put down 5% to 20%. PMI is required below 20% down but cancels automatically at 20% equity — unlike FHA MIP which stays for the life of the loan. A 20% down payment eliminates PMI entirely.
● Debt-to-Income Ratio
Maximum DTI for a conventional loan is 45% under standard Fannie Mae guidelines. With a Desktop Underwriter (DU) Approve/Eligible finding and strong compensating factors such as significant reserves or a high credit score, DTI may stretch to 50%. Your DTI is calculated by dividing your total monthly debt obligations by your gross monthly income.
● Income & Employment
A two-year employment history is required. W-2 employees provide 30 days of pay stubs and two years of W-2s. Self-employed borrowers provide two years of personal and business tax returns. Commission, rental, and investment income qualifies with a two-year documented history.
● Reserves & Assets
Most conventional purchase loans require two months of PITI in verified reserves after closing. Investment properties typically require six months. Reserves may be checking, savings, or retirement accounts (60% of vested balance), documented with two recent statements.
● Property Requirements
Conventional loans cover single-family homes, condos, 2- to 4-unit properties, and manufactured homes. Properties must be in good condition and appraised by a licensed appraiser. Condos must meet Fannie Mae project approval. Mixed-use and non-warrantable condos may require a Non-QM product.
Side-by-Side Comparison
Comparing Your Loan Options — Agency vs. Government-Backed
Feature
Conventional Loan
FHA Loan
Min Credit Score
620
500 (with 10% down); 580 (with 3.5% down)
Min Down Payment
3%
3.5% (580+ score)
Mortgage Insurance
PMI — drops off at 20% equity
MIP — stays for life of loan if down <10%
Upfront MIP
None
1.75% of loan amount
Loan Limit (2026)
$806,500 (conforming); higher in some counties
$524,225 base; higher in high-cost areas
Property Condition
More flexible
Stricter appraisal standards
Best When
Credit 620+, equity or larger down payment
Credit 500–619 or smaller down payment needed
Credit above 700 with 5% or more down? A conventional loan almost always costs less monthly — no upfront MIP and PMI cancels at 20% equity. Below 620? FHA is likely the better path. We run both scenarios before recommending a program. See our FHA loans in New Jersey page for a full side-by-side comparison.
How It Works
How the Conventional Mortgage Process Works
Here is what to expect from first contact to closing when you apply through Mortgage-World.com:
Step 1 — Pre-Approval
We review income and asset documents, then shop your profile across 20-plus wholesale lenders to determine your maximum purchase price and rate options.
Step 2 — Application & Rate Lock
Once under contract, we submit the application, lock your rate at the best available price, and issue your Loan Estimate within three business days.
Step 3 — Processing
Our processor verifies documentation, orders the appraisal, and confirms title. Most files reach underwriting within 5 to 7 business days.
Step 4 — Underwriting
An underwriter reviews income, credit, assets, appraisal, and title. Most approvals include a short list of conditions to satisfy before closing.
Step 5 — Clear to Close
Conditions cleared, the underwriter issues Clear to Close. Your final Closing Disclosure arrives at least three business days before closing with exact costs and payment.
Step 6 — Closing & Funding
You sign at the closing table; purchase loans fund same day or next business day. Total timeline: typically 21 to 45 days from application.
Fannie Mae’s 97% LTV program guidelines are publicly available for borrowers who want to review the low down payment conventional options directly from the source.
High-balance conventional loans up to $1,209,750 for high-cost counties in NJ, CT, and FL — still agency-backed, with conforming underwriting standards.
Already own a home? Refinance into a conventional fixed rate loan to lower your rate, shorten your term, or access your equity with a payment that never changes.
Not sure if conventional or FHA is the better fit? Our FHA page covers credit scores from 500, 3.5% down, and side-by-side comparisons with conventional financing.
What Clients Say
What Our Clients Say About Working With Us
★★★★★
“Chris Luis is the BEST mortgage broker on this planet! If you’re looking to buy a home, definitely give him a call. Chris will go above and beyond to try to help you!”
— Tanya W.
★★★★★
“Chris was the best mortgage person I’ve ever experienced in my life. My refi was very complicated — we must have called him 75 times. He never missed one of my calls. Unbelievable, and we got it done. Can’t thank him enough.”
— Kirk G.
★★★★★
“Julia Luis has been very professional and has been very helpful during the process! Anyone looking for someone to assist them in their future adventures needs to have her on your side! Thank you for being there for me!!”
What is the minimum credit score for a conventional loan?
The minimum credit score for a conventional loan is 620. Borrowers between 620 and 679 face higher loan-level price adjustments. Scores of 740 or above receive the best pricing. Below 620, an FHA loan starting at 500 may be the better option.
How much down payment do I need for a conventional loan?
Minimum 3% down for first-time buyers using Conventional 97 or HomeReady. Most buyers put down 5% to 20%. Less than 20% requires PMI, which cancels at 20% equity. A 20% down payment eliminates PMI from day one. Second homes require 10% down; investment properties require 15% to 25%.
What is the conventional loan limit in 2026?
The 2026 conforming loan limit is $806,500 in most counties. High-cost areas — including Bergen County NJ, Fairfield County CT, and parts of South Florida — qualify for limits up to $1,209,750. Above that requires a jumbo conventional loan (minimum 10% down, 660 FICO).
Is PMI required on all conventional loans?
PMI is required when the down payment is below 20%. Unlike FHA MIP, conventional PMI cancels automatically under the Homeowners Protection Act when the balance reaches 80% of the original appraised value, and the lender must terminate it at 78% LTV. FHA MIP stays for the life of the loan in most cases.
Can I use a conventional loan to buy an investment property?
Yes. Conventional loans cover investment properties including single-family rentals and 2- to 4-unit properties. Requirements: minimum 15% down for single-family (25% for 2-4 units), 620 FICO, and six months of reserves. They carry lower rates than DSCR or portfolio loans for borrowers who can fully document income.
What documents do I need for a conventional loan?
Standard documents include two years of W-2s and tax returns, 30 days of pay stubs, two months of bank statements, a government ID, and current real estate information. Self-employed borrowers add two years of business returns and a year-to-date P&L. Refinances also need your current mortgage statement and homeowners insurance declarations.
Ready to Apply for a Conventional Loan? Let’s Find Your Best Rate.
Tell us your purchase price, down payment, credit score, and property type. We shop 20-plus wholesale lenders and present your best conventional loan options side by side — no obligation, no hard pull to get started.
Chris Luis — Broker/Owner, Mortgage-World.com — NMLS #1630225
I have been a licensed loan officer since 2002, guiding borrowers through conventional loans across New Jersey, Connecticut, and Florida in every rate environment. Mortgage-World.com has operated as an independent brokerage since 2017, shopping 20-plus wholesale lenders so every client gets the most competitive rate available for their profile.
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