Flexible conventional loans with competitive rates.
Apply for a conventional home loan online and see if you pre-approve in as little as 24 hours.
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Conventional
Fannie Mae / Freddie Mac
The Basics
What is a conventional loan?
A conventional loan is a mortgage that is not backed or insured by a federal agency, unlike FHA, VA, or USDA loans. It is issued by private lenders and may follow guidelines set by Fannie Mae and Freddie Mac. Conventional loans carry stricter credit and income requirements, but they may offer qualified borrowers lower long-term costs, no mandatory upfront insurance fee, and more flexibility on property types.
Not government-backed; may follow Fannie Mae and Freddie Mac guidelines.
Stricter credit requirements than government-backed loans.
No mandatory upfront mortgage insurance fee.
Mortgage insurance may be cancellable once you reach enough equity.
Available for primary homes, second homes, and investment properties.
What it takes to qualify.
A clear, honest breakdown of what most lenders look for — and what Savvy reviews when you apply.
Credit score
The minimum is typically 620, but conventional rates may be more favorable for borrowers with scores of 740 and above.
Down payment
As little as 3% down for first-time buyers. Repeat buyers may have options with 5% down or more, and putting down 20% typically avoids PMI.
Debt-to-income (DTI)
Most lenders look for a DTI of 45% or lower; strong credit or a larger down payment can stretch it toward 50%.
Income and employment
Stable, verifiable income, generally at least two years of consistent history in the same line of work.
Property requirements
Primary residences, second homes, and investment properties qualify; the home must meet basic safety and habitability standards.
Loan limits
The 2026 conforming limit is $832,750 for a single-family home; higher limits apply in high-cost areas. Limits are updated annually.
What affects your conventional rate.
Rates are not one-size-fits-all. We update ours daily and match your real scenario.
Credit score
A borrower with a 760 score typically receives a lower rate than a borrower with a 660 score.
Down payment
Putting down 20% or more typically avoids PMI and may earn you a better rate.
Loan term
Shorter terms often carry lower interest rates. A 15-year typically sits below a comparable 30-year.
Fixed vs. adjustable
A fixed rate holds for the full term. An ARM often starts lower, then adjusts after a set period.
Loan size and property type
Larger loans, investment properties, and second homes may carry higher rates than a standard primary residence.
Market conditions
Rates move daily with economic data, Federal Reserve policy, and bond market activity.
How to apply for a conventional loan.
The average time from application to closing is 28 days. Closing timelines vary by loan and transaction.
Complete the application
Our secure application asks for basic personal details, employment, income, and the home you want to buy.
Upload your documents
You receive a personalized checklist and upload everything through our secure portal. Fast and simple.
Get your pre-approval
Once we review your information, we may issue a pre-approval with an estimated loan amount, rate, and monthly payment.
Lock your rate
Found your home? Lock your rate to protect against market movement while your loan moves through underwriting.
Close and move in
Your dedicated advisor guides you through final underwriting and closing, start to finish.
Ready to move forward? Get pre-approved today.
No credit impact to check your options. No surprise fees. Just straightforward guidance from a team that has helped thousands of borrowers buy their home.
Frequently asked questions.
Everything you need to know about conventional loans.
A conventional loan is a mortgage not insured or guaranteed by a government agency. It may follow guidelines set by Fannie Mae and Freddie Mac and is offered by banks, credit unions, and private lenders. Conventional home loans are a popular mortgage type due to their potential flexibility, competitive rates, and potentially lower long-term costs for qualified borrowers.
The minimum credit score for most conventional loans is 620. However, rates improve significantly as your score rises. Conventional rates may be more favorable for borrowers with scores of 740 and above.
Rates fluctuate based on market conditions. Your rate is influenced by your credit score, down payment, loan term, and property type.
You can put as little as 3% down for first-time buyers. Repeat buyers may have options with 5% down or more, and putting down 20% typically avoids PMI.
Yes. Conventional loans can be used for primary homes, second homes, and investment properties, though investment loans typically require higher down payments and may carry higher interest rates.