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Conventional Loan requirements for 2026

Quick answer

To qualify for a conventional loan you generally need a 620+ credit score, at least 3% down for eligible first-time buyers (5% otherwise), a debt-to-income ratio up to 45% (50% with strong automated approval), and a loan amount within the county conforming limit ($832,750 in most counties for one unit). PMI applies with less than 20% down.

By Purchase Mortgage Loan Editorial Team Checked against official sources per our editorial standardsLast updated

What are the Conventional loan requirements?

RequirementConventional
Minimum credit score620 (Fannie Mae / Freddie Mac)
Minimum down payment3% for eligible first-time and low-income programs; 5% standard
Debt-to-incomeUp to 45% manual, up to 50% with DU/LPA approval
Mortgage insurancePMI with less than 20% down; cancellable at 20% equity
OccupancyPrimary, second home or investment
Loan limitCounty conforming limit (2026 baseline $832,750)

How does Conventional mortgage insurance work?

Private mortgage insurance (PMI) is required when you put down less than 20%. Unlike FHA, you can request cancellation at 80% loan-to-value and it ends automatically at 78% under the Homeowners Protection Act.

What property rules apply?

Conventional loans can finance primary residences, second homes and investment properties (1–4 units), with stricter down payment rules for investment and multi-unit homes.

Learn more on our Conventional Loan guide or check 2026 loan limits by county.

Conventional requirements by state

AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming

Conventional options by credit score

500 credit score520 credit score540 credit score560 credit score580 credit score600 credit score620 credit score640 credit score660 credit score680 credit score700 credit score720 credit score740 credit score760 credit score780 credit score800 credit score

Frequently asked questions

620 (Fannie Mae / Freddie Mac)

3% for eligible first-time and low-income programs; 5% standard

Private mortgage insurance (PMI) is required when you put down less than 20%. Unlike FHA, you can request cancellation at 80% loan-to-value and it ends automatically at 78% under the Homeowners Protection Act.

Conventional loans can finance primary residences, second homes and investment properties (1–4 units), with stricter down payment rules for investment and multi-unit homes.

Sources

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Figures on this page are estimates for educational purposes only and are not a loan offer or commitment to lend. Rates, loan limits, fees and assistance programs change frequently and vary by lender, location and borrower profile. Confirm current terms with a licensed loan officer.