The standard mortgage. Structured around you.

A Conventional loan is simply a mortgage that is not insured or guaranteed by a government agency such as FHA, VA or USDA. A conforming loan is a Conventional loan that also meets Fannie Mae or Freddie Mac requirements, including the applicable loan limit. Every conforming loan is Conventional; not every Conventional loan is conforming.

A Conventional loan above the applicable county limit is generally financed as a Jumbo or high-balance loan, under a different pricing and underwriting framework.

Fannie Mae and Freddie Mac are the two government-sponsored enterprises that buy conforming loans from lenders. They publish the eligibility rules and run the automated underwriting systems — Desktop Underwriter and Loan Product Advisor — that most Conventional files are submitted to.

They set the guidelines. They do not set your rate: pricing comes from the market, the loan-level adjustments applied to your file, and the individual lender's own margin and fees.

Starting November 15, 2025, Fannie Mae's Desktop Underwriter no longer requires a minimum third-party credit score, and Freddie Mac does not require a minimum Indicator Score for an Accept Mortgage. Both systems assess the borrower's credit reputation as part of the complete file rather than gating on one number.

That is a change in how the agencies evaluate credit — not an announcement that credit no longer matters. Lender, mortgage-insurance and program overlays may still apply and are frequently tighter than the agency framework, which is why approximately 620 remains a common practical starting point in the real market.

Credit score also remains highly relevant to pricing and to mortgage insurance. A file can clear automated underwriting and still be priced very differently from a stronger one, so the score belongs in the cost conversation even where it is no longer a hard cutoff.

A primary residence generally receives the strongest pricing and the widest low-down-payment options. A second home has to genuinely be used as a second home — how the property is occupied, how far it is from the primary residence and how it is rented all matter. An investment property is priced for the risk it carries and requires more equity and more reserves.

Occupancy is verified. A property represented as a second home and operated as a full-time rental is a different loan.

Conventional financing covers one- to four-unit properties. Unit count changes the loan limit, the loan-to-value limits, the reserve requirements and how rental income is treated.

The standard 2026 baseline conforming limits are $832,750 for one unit, $1,066,250 for two, $1,288,800 for three and $1,601,750 for four. Designated high-cost counties carry higher limits, so these are baselines rather than ceilings.

Qualifying income has to be stable, documentable and reasonably likely to continue. Salaried income is generally the most straightforward; a job history shorter than two years does not automatically disqualify a salaried borrower.

Bonus, overtime, commission and tip income are evaluated on their history and trend. A two-year history is preferred, and current Fannie Mae guidance can allow no less than 12 months when positive factors support the shorter history. Documented new-employment offers and contracts can also be used under specific requirements.

Two years of self-employment is the standard history. Some borrowers with at least 12 months in the current business may be considered when prior related income and the rest of the requirements support it.

Qualifying income for a self-employed borrower is calculated from the returns and the business performance, not from deposits or revenue. Two businesses with identical gross receipts can produce very different qualifying income.

Assets have to be documented and sourced. Reserves — the money left after closing, measured in months of housing payment — are a real underwriting factor, and they matter more on second homes, investment properties and multi-unit files.

Gift funds from an eligible donor can be used on many Conventional transactions, with a documented gift letter and a traceable transfer. Large deposits that cannot be sourced create conditions and delays, which is why the paper trail matters from the first statement onward.

A seller can contribute toward the buyer's closing costs within limits that depend on occupancy and loan-to-value. The contribution can cover closing costs and prepaid items; it generally cannot be used for the down payment on a Conventional loan.

Concessions above the applicable limit are treated as a reduction in the sales price, which changes the loan amount and the loan-to-value.

For a Florida condominium, approving the borrower is only half of the file. The project itself is reviewed: the budget and reserve funding, insurance, the owner-occupancy and investor concentration, delinquent assessments, litigation and any deferred structural maintenance.

A project that does not meet agency requirements can end a transaction the borrower was fully approved for, which is why the project review belongs early in a Florida condo purchase and not the week before closing.

Borrower-paid monthly mortgage insurance is the most common structure. Single-premium coverage is paid up front, and lender-paid coverage is reflected in a higher interest rate for the life of the loan. Each is a different way of paying for the same coverage.

For many covered loans, a borrower may request cancellation when the scheduled principal balance reaches 80% of the original value, subject to legal and servicing requirements. Automatic termination commonly occurs at the scheduled 78% point when the loan is current, with exceptions. The loan's own disclosure and the servicer control the exact process.

Standard Fannie Mae waiting periods run from a specific completion, discharge or dismissal date — not from when the trouble began. Chapter 7 or 11 bankruptcy is commonly four years from discharge or dismissal, and potentially two with documented extenuating circumstances. Chapter 13 is commonly two years from discharge or four years from dismissal.

Foreclosure is commonly seven years, and potentially three with documented extenuating circumstances and added restrictions. A deed-in-lieu, preforeclosure sale or short sale is commonly four years, and potentially two with documented extenuating circumstances. Multiple events, mortgage debt included in a bankruptcy, disputed reporting and lender overlays all change the answer, so the dates are worth verifying rather than estimating.

A Conventional refinance can lower a rate or payment, shorten or extend the term, remove mortgage insurance when the equity supports it, or take cash out against equity. Cash-out is priced differently from a rate-and-term refinance and carries its own loan-to-value limits.

The test is whether the financial benefit supports the cost. A lower rate that takes eleven years to pay back its own closing costs is not automatically a good refinance.

The 30-year fixed is the default for a reason: the payment is knowable for the life of the loan. A 15- or 20-year fixed builds equity faster at a higher payment, and generally prices better.

An adjustable-rate mortgage carries a fixed period followed by periodic adjustments within defined caps. It can make sense for a genuinely short holding period, and it is a risk decision rather than a rate decision.

The standard 2026 baseline one-unit conforming limit is $832,750. Two-, three- and four-unit baselines are higher, and designated high-cost areas carry county limits above the baseline.

This means a loan above the baseline is not automatically a Jumbo loan. The applicable limit follows the property's county and unit count, and it should be confirmed for the specific address rather than assumed.

Down-payment-assistance programs are administered by state and local agencies and by lenders, each with their own income limits, purchase-price limits, occupancy requirements, homebuyer-education requirements and repayment terms.

Assistance interacts with the first mortgage, so the pairing has to be structured deliberately. Eligibility is specific and is never assumed — it is confirmed against the program's current terms.