Last reviewed: April 18, 2026. Informational market research. Not a lender. Rates shown are Freddie Mac PMMS national averages.
A conventional mortgage is a home loan that is not insured or guaranteed by a federal government agency. Conventional loans are originated by private lenders — banks, credit unions, mortgage banks, and non-bank lenders — and either held on the lender’s balance sheet or sold into the secondary market to Fannie Mae, Freddie Mac, or private investors. This guide is a market-data reference for 30-year fixed conventional mortgages. It is not financial advice.
Conforming vs Non-Conforming Conventional Loans
What is a conforming loan?
A conforming conventional loan meets the loan-size limits and underwriting guidelines published by the Federal Housing Finance Agency (FHFA) for Fannie Mae and Freddie Mac purchase eligibility. The 2026 nationwide conforming loan limit floor is $524,225 for a one-unit property. In designated high-cost counties, the conforming limit rises to as high as $1,209,750. Full per-county limits are published in the FHFA annual County Loan Limits table.
What is a non-conforming or jumbo loan?
A conventional loan above the applicable county conforming limit is a jumbo loan. Jumbo loans are not eligible for purchase by Fannie Mae or Freddie Mac and are typically held on a lender’s balance sheet or sold into the private jumbo secondary market. Jumbo loans generally involve stricter underwriting (higher credit score minimums, lower debt-to-income ratios, larger reserve requirements) than conforming loans.
Typical Requirements for a 30-Year Fixed Conventional Loan
Down payment
Conventional loans generally require a minimum down payment of 3% (for qualifying first-time homebuyers under Fannie Mae HomeReady or Freddie Mac Home Possible) to 20%. Loans with less than 20% down typically require private mortgage insurance (PMI) until the loan-to-value ratio reaches 80%. PMI is generally removable under the Homeowners Protection Act upon request when the loan reaches 80% LTV, and is automatically terminated at 78% LTV.
Credit score
Most conforming conventional lenders use a minimum FICO score of 620 for a 30-year fixed conventional mortgage. Higher scores generally receive more favorable pricing. Jumbo lenders frequently require 680 to 740 minimum FICO for standard underwriting. Borrowers with lower credit profiles may find FHA or VA loan programs more accessible than conventional financing — see our FHA Loans Guide.
Debt-to-income ratio (DTI)
Fannie Mae and Freddie Mac typically allow a debt-to-income ratio up to 45% for manually underwritten loans and up to 50% for loans underwritten through Desktop Underwriter (DU) or Loan Prospector (LP) with compensating factors. DTI is calculated as total monthly debt obligations divided by gross monthly income.
Employment and income documentation
Conventional underwriting generally requires two years of documented employment history in the same field, the most recent two years of W-2 forms, the most recent pay stubs, and for self-employed borrowers, two years of signed federal tax returns. Non-standard income documentation programs (“bank statement loans”) exist but typically carry higher rates and are not eligible for Fannie/Freddie purchase.
30-Year Fixed Conventional Rate Averages
The most recent Freddie Mac Primary Mortgage Market Survey (PMMS) release is the benchmark for national 30-year fixed conventional rate averages. PMMS publishes a new figure every Thursday at 11:00 AM Eastern. Actual rate quotes to individual borrowers vary based on credit profile, loan amount, property type, down payment, lender pricing strategy, and the specific day of pricing.
For current PMMS national averages by state and city, visit any of our state pages. For the primary source, see the Freddie Mac PMMS publication.
How Conventional Compares to Other Loan Types
Conventional vs FHA
FHA loans are insured by the Federal Housing Administration and generally offer easier credit qualification (FICO minimums as low as 580 for 3.5% down, or 500 for 10% down) but carry both upfront and annual mortgage insurance premiums for most loan terms. Conventional loans allow PMI cancellation at 80% LTV; FHA mortgage insurance typically lasts the life of the loan unless the borrower refinances. Conventional loans are generally preferred by borrowers with strong credit who can reach 20% down or who plan to reach 80% LTV through appreciation or paydown relatively quickly.
Conventional vs VA
VA loans are guaranteed by the Department of Veterans Affairs and are available to qualifying veterans, active-duty service members, and some surviving spouses. VA loans allow 0% down and do not require monthly mortgage insurance — a funding fee applies instead. For eligible veterans, VA financing is frequently more economical than conventional for similar credit profiles.
Conventional vs USDA
USDA Rural Development loans are guaranteed by the USDA and are available to borrowers meeting income limits for the purchase of homes in eligible rural and some suburban areas. USDA loans allow 0% down and carry modest upfront and annual guarantee fees. For eligible properties and income levels, USDA is often the lowest-cost financing option.
Rate Lock and Closing
Once a borrower signs a purchase contract or decides to refinance, a lender can lock a rate for a set period — typically 30, 45, 60, or 90 days. Longer locks generally carry a small pricing premium. Rate locks protect against rate increases during processing but require the loan to close within the lock period. Float-down options, where the borrower benefits from a rate decrease while locked, are available from some lenders for an additional fee.
Closing costs on a conventional loan typically include origination fees, appraisal, title insurance, recording fees, prepaid interest and taxes, and any escrow setup. Total closing costs are commonly 2%-5% of the loan amount. Lenders are required under TILA and RESPA to provide a Loan Estimate within three business days of application and a Closing Disclosure at least three business days before closing.
Frequently Asked Questions
Is a conventional 30-year fixed the best mortgage type?
“Best” depends on borrower circumstances. Conventional 30-year fixed is the most common mortgage product in the U.S. market because it offers predictable payments, removable PMI for borrowers who reach 80% LTV, and broad lender availability. Borrowers with lower credit, VA eligibility, or properties in USDA-eligible areas may find government-backed alternatives more economical. Consult a HUD-approved housing counselor (HUD directory) for situation-specific guidance.
Can I remove PMI from a conventional loan?
Yes. Under the federal Homeowners Protection Act, borrowers can request PMI cancellation once the loan reaches 80% loan-to-value based on the original property value. Lenders must automatically terminate PMI when the loan reaches 78% LTV, or when the loan reaches the midpoint of the amortization period, whichever comes first. Borrowers may also request an appraisal-based cancellation if home values have risen significantly since origination.
What credit score do I need?
Most conforming conventional lenders use 620 as the floor. Higher scores — 740 and above — generally receive the most favorable pricing. Borrowers in the 620-699 range will typically see rate surcharges and may face stricter DTI or down-payment requirements. Individual lender overlays may be stricter than Fannie Mae / Freddie Mac minimums.
How much can I borrow?
For a conforming conventional loan in 2026, the nationwide baseline maximum is $524,225 for a one-unit property. High-cost counties have higher limits. Above the conforming limit, jumbo financing applies. Individual borrowers’ actual maximum loan amount is also constrained by income, DTI, and lender-specific underwriting.
Related Guides
This guide is informational market research. Actual terms vary by borrower and lender. 30YearMortgageRates.com is not a lender; we publish national and regional average rate data sourced from Freddie Mac PMMS and related datasets.