Conventional Loans

What is Conventional?

Conventional loans are the most widely used mortgage product in the United States, offering flexible terms, competitive rates, and broad eligibility for a wide range of borrowers and property types. Unlike government-backed loans (FHA, VA, USDA), conventional loans follow guidelines set by Fannie Mae and Freddie Mac and are available through private lenders like Q Home Loans. For 2026, the conforming loan limit is $832,750 in most counties — meaning the vast majority of Spokane-area purchases qualify for conventional financing. Contact Q Home Loans to compare conventional options side-by-side with FHA, VA, and other programs.

Why Choose Conventional Loans?

Best Rates for Strong Credit

Borrowers with 740+ credit scores get the most competitive interest rates available.

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No Upfront Mortgage Insurance

Unlike FHA, conventional loans have no upfront MIP — keeping your closing costs lower.

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Wider Property Types

Finance condos, townhomes, multi-family (2–4 units), and investment properties.

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Cancel PMI Over Time

Once you reach 20% equity, PMI is automatically cancelled — FHA MIP is permanent.

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Faster Closing

Conventional loans often close faster than government-backed loans with fewer requirements.

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Jumbo-Eligible

Loan amounts above conforming limits are available as jumbo conventional products.

Conventional Loans Requirements

Basic Qualifications

  • Minimum 620 credit score (680+ for best rates)
  • Debt-to-income ratio typically under 45%
  • Down payment of 3%–20% depending on program
  • Stable employment history (2+ years preferred)
  • Property must meet conventional appraisal standards
  • PMI required if down payment is less than 20%

Required Documents

  • Last 2 years W-2s and tax returns
  • Last 30 days pay stubs
  • Last 2 months bank statements
  • Government-issued photo ID
  • Signed purchase agreement (for purchases)
  • Homeowners insurance quote

How It Works

Conventional loans follow guidelines set by Fannie Mae and Freddie Mac, which purchase loans from lenders on the secondary market. This system provides liquidity to lenders and keeps interest rates competitive. With less than 20% down, you'll pay private mortgage insurance (PMI), which typically costs 0.5%-1% of the loan amount annually. Once you reach 20% equity through payments or appreciation, you can request PMI removal. Conventional loans offer the most flexibility in property types and can be used for primary residences, second homes, or investment properties.

Who Should Consider Conventional Loans?

Move-Up Buyers

Homeowners selling their current home and buying up — conventional financing offers the flexibility and speed you need.

Buyers with Good Credit

If your credit score is 680+ and you have a solid down payment, conventional loans offer the lowest long-term cost.

Investment Property Buyers

Purchasing a rental property or second home? Conventional is typically the best financing option.

Buyers Wanting to Avoid MIP

Unlike FHA loans, conventional loans allow you to eliminate mortgage insurance once you reach 20% equity.

Frequently Asked Questions

Get answers to common questions about conventional loans.

Most lenders require a minimum 620 credit score, but you'll get the best rates with a 740+ score. Q Home Loans works with borrowers across the credit spectrum.

Conventional loans are not government-backed and typically require better credit, but offer lower long-term costs for qualified buyers — no permanent mortgage insurance and no upfront MIP.

Yes. You can put as little as 3% down with certain programs. You'll pay PMI until you reach 20% equity, but it's cancellable — unlike FHA mortgage insurance.

The 2026 conforming loan limit is $806,500 for most counties in Washington and Idaho. Higher-cost areas may have higher limits.

Typically 21–30 days from application to closing, though Q Home Loans often closes in as few as 14 days for well-prepared buyers.

Ready to Get Started?

Q Home Loans specializes in conventional loans for homebuyers and investors in Washington. Get expert guidance and competitive rates.