A conventional mortgage is a home loan that is not insured or guaranteed by the federal government. Conventional loans typically require higher credit scores and larger down payments than government-backed loans, but they offer more flexibility in terms of property types and loan amounts. Conventional loans conform to guidelines set by Fannie Mae and Freddie Mac, with loan limits up to $766,550 in most areas ($1,149,825 in high-cost areas like parts of Washington). Private mortgage insurance (PMI) is required with less than 20% down but can be removed once you reach 20% equity.
Choose from 15, 20, or 30-year fixed-rate mortgages to match your financial goals.
Competitive interest rates for borrowers with good credit and stable income.
Finance higher-priced homes with loan limits up to $766,550 in most areas.
Perfect financing option for vacation homes and rental properties.
Streamlined underwriting process for qualified borrowers with strong credit.
With 20% down, avoid monthly PMI payments and reduce your monthly costs.
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.
Excellent credit history and stable income seeking the best rates
Have equity from previous home to use as down payment
Want to purchase rental properties or vacation homes
Exceed income limits for government-backed programs
Get answers to common questions about conventional loans.
Q Home Loans specializes in conventional loans for homebuyers and investors in Washington. Get expert guidance and competitive rates.