“Super impressed with how fast and smooth the whole process was — especially given my complex RSU comp structure that traditional banks kept discounting.
Eric and the team had no problem including my full base + RSU compensation. They were extremely fast, set clear expectations from the start, and followed through on everything they promised.
Honestly one of the easiest and most stress-free mortgage experiences I’ve ever had. Highly recommend!”
Conventional Loans with Competitive Rates and Down Payments as Low as 3%
LendFriend Mortgage helps homebuyers and homeowners secure conventional loans for primary residences, second homes, and investment properties. With access to more than 40 lenders, we compare conventional mortgage rates, structure the down payment and mortgage insurance around your goals, and close in as little as 14 days.
What Is a Conventional Loan?
A conventional loan is a mortgage that is not insured or guaranteed by a federal agency such as the FHA, VA, or USDA. Most conventional loans are conforming loans, meaning they meet the standards set by Fannie Mae and Freddie Mac, including the 2026 conforming loan limit of $832,750 for a one-unit property in most of the country and up to $1,249,125 in designated high-cost counties.
Lenders qualify conventional borrowers on credit score, debt-to-income ratio, down payment, and documented income and assets. Because the loan carries no government guarantee, pricing rewards strong credit and larger down payments, and private mortgage insurance applies only while the loan balance exceeds 80% of the home’s value.
For most homebuyers, conventional financing offers several advantages:
- Down payments as low as 3% for first-time buyers and 5% for repeat buyers on a primary residence
- No upfront mortgage insurance premium, and PMI that can be removed once equity reaches 20%
- Eligibility for primary residences, second homes, and 1 to 4 unit investment properties
- Fixed-rate terms from 10 to 30 years, plus adjustable-rate options for shorter holding periods
Conventional mortgage financing is used for purchases, rate-and-term refinances, and cash-out refinances. Loan amounts above the conforming limit move into jumbo loan territory, where LendFriend offers a separate set of programs.
Why Homebuyers Choose LendFriend for Conventional Loans
LendFriend Mortgage is a mortgage broker rather than a bank, which means every conventional loan we originate is priced across a network of more than 40 lenders instead of a single rate sheet. The result is a lower rate or lower closing costs for the same borrower profile, together with guidance from a team that has closed thousands of conventional purchases and refinances.
Here is why borrowers work with us:
- Competitive conventional loan rates. We compare pricing across more than 40 lenders on every file, so a borrower with a given credit score and down payment sees a better rate than a single bank can offer.
- Low down payment options. Qualified buyers can purchase a primary residence with 3% down through Conventional 97, HomeReady, and Home Possible, and 5% down is available to most buyers with a 620 credit score or higher. Buyers comparing first-time homebuyer loan programs see the exact payment difference before choosing.
- Loan amounts up to the 2026 conforming limits. Conventional loans go up to $832,750 in most counties and $1,249,125 in high-cost areas. Larger purchases move to our jumbo loan programs, which begin where conforming limits end.
- Fixed and adjustable-rate structures. 30-year, 20-year, and 15-year fixed-rate terms are available alongside adjustable-rate mortgages with 5, 7, or 10-year fixed periods for buyers who expect to move or refinance sooner.
- Financing for every occupancy type. Conventional loans cover primary residences, second homes, and 1 to 4 unit investment properties, with down payment and reserve requirements that scale with the property type.
- Fast closings when timing matters. We collect income, asset, and credit documentation up front and order the appraisal immediately, which lets qualified conventional purchases close in as little as 14 days.
- More than 1,000 5-star borrower reviews. Our client reviews speak to the communication, responsiveness, and hands-on guidance borrowers receive from pre-approval through closing.
Conventional Loan Programs
LendFriend offers conventional loans for homebuyers and homeowners in Texas, Florida, California, and 14 other states. Each program is priced across our lender network and structured around the borrower’s credit profile, down payment, and plans for the property.
30-Year and 15-Year Fixed-Rate Conventional Loans
A fixed rate keeps principal and interest the same for the life of the loan. The 30-year term maximizes purchasing power and keeps the payment lowest, while the 15-year term carries a lower rate and retires the balance in half the time. 20-year and 10-year terms are also available.
Conventional Adjustable-Rate Mortgages
A 5/6, 7/6, or 10/6 ARM holds the rate fixed for the first 5, 7, or 10 years and then adjusts every 6 months within capped limits. ARMs typically price below a 30-year fixed and suit buyers who expect to sell or refinance before the fixed period ends.
Low Down Payment Conventional Loans
Conventional 97 allows 3% down for first-time buyers, and HomeReady and Home Possible extend 3% down with reduced mortgage insurance to buyers within income limits. Repeat buyers can purchase a primary residence with 5% down.
High-Balance Conforming Loans
In high-cost counties the conforming limit rises above the $832,750 baseline, up to $1,249,125 in 2026. High-balance conventional loans finance homes in those markets at conforming pricing without moving into jumbo underwriting.
Conventional Loans for Second Homes and Investment Properties
Second homes qualify with 10% down. Single-family investment properties start at 15% down and 2 to 4 unit rentals at 25%, with rental income from the appraisal helping the borrower qualify.
Conventional Loan Options Across Key States
LendFriend originates conventional loans in 17 states. In Texas, our home market, that includes purchases and refinances throughout Austin, Dallas-Fort Worth, and Houston, where the conforming limit sits at the $832,750 baseline and most homes fit inside conventional financing.
In Florida, buyers use conventional loans for primary residences and second homes from Miami and Boca Raton to Tampa and Jacksonville. California buyers in Los Angeles, Orange County, and the Bay Area benefit from high-balance conforming limits of $1,249,125 before jumbo financing is needed.
We also close conventional loans across Colorado, Georgia, North Carolina, Illinois, Ohio, and Michigan, along with Connecticut, Maryland, New Jersey, Virginia, Tennessee, Oregon, Idaho, and New Hampshire.
How LendFriend Helps You Get a Conventional Loan
A conventional purchase or refinance with LendFriend takes 3 clear steps. We verify credit, income, and assets at the start so the pre-approval holds through underwriting and closing.
Get Pre-Approved
Complete a short online application and share pay stubs, W-2s, and bank statements. We review credit, calculate your debt-to-income ratio, and issue a pre-approval letter that sellers and agents recognize, often the same day.
Compare Rates Across 40+ Lenders
We price your conventional loan across our lender network and present the fixed and adjustable options that fit your down payment, timeline, and monthly budget, including the mortgage insurance structure that costs the least over your expected ownership period.
.png?width=50&height=50&name=Email%20Icons%20(3).png "Email Icons (3)")
Close in as Little as 14 Days
Once you are under contract, we order the appraisal immediately and move the file through underwriting. Clean conventional files close in 14 to 21 days, and we stay available 7 days a week until the keys are in hand.
How Homebuyers Use Conventional Loans
From a first purchase with 3% down to a high-balance loan in a high-cost county, these examples show how borrowers use conventional financing across the markets we serve.
The scenarios below are illustrative of the conventional loans we structure every week.
$475K Conventional Loan for a First Home in Austin with 5% Down
A first-time buyer purchasing an approximately $500,000 home in South Austin used a 30-year fixed conventional loan with 5% down. Private mortgage insurance was priced on a 760 credit score, adding roughly $100 a month, and it can be removed once the balance reaches 80% of the home’s value.
$407K HomeReady Loan on a $420K Columbus Purchase with 3% Down
A buyer within HomeReady income limits purchased an approximately $420,000 home in Columbus, Ohio with 3% down. Reduced mortgage insurance coverage and a rate credit from the program produced a lower monthly payment than a standard 5% down conventional loan.
$408K Conventional Loan on a $480K Raleigh Rental with 15% Down
An investor purchasing an approximately $480,000 single-family rental in Raleigh used a conventional investment property loan with 15% down. 75% of the appraiser’s market rent counted toward qualifying income, which offset most of the new payment in the debt-to-income calculation.
$1.1M High-Balance Conforming Loan in Orange County
A buyer purchasing an approximately $1.4 million home in Irvine used a high-balance conventional loan of $1.1 million, inside Orange County’s $1,249,125 limit. Conforming pricing and a 20% down payment kept the rate below the jumbo alternatives quoted by the buyer’s bank.
Why a Conventional Loan Is Often the Strongest Option
Conventional loans account for the majority of mortgages in the United States because they combine competitive pricing with flexibility on property type and loan structure. For borrowers with a 620 credit score or higher and documented income, a conventional loan is usually the first option we price.
Mortgage Insurance That Ends
FHA loans charge an upfront premium and, for most borrowers, monthly mortgage insurance for the life of the loan. Conventional PMI has no upfront premium, is priced on credit score, and can be cancelled at 80% loan-to-value or drops off automatically at 78%.
Flexibility on Property and Occupancy
Conventional financing covers primary residences, second homes, condos, townhomes, and 1 to 4 unit investment properties. Government programs are limited to owner-occupied homes, which makes conventional the standard choice for a vacation home or a rental.
Pricing That Rewards Strong Credit
Conventional rates and mortgage insurance are tiered by credit score and down payment, so a borrower with a 740 score and 20% down receives the best terms in the market. Borrowers with lower scores or smaller down payments still qualify, and we show the exact rate and PMI difference before you commit. Below a 620 score, an FHA loan is usually the better fit, and we offer those as well.
BORROWER TESTIMONIALS
See Why Borrowers Call Us the Best Mortgage Broker
From first-time homebuyers and business owners to jumbo borrowers and clients with complex income, see what borrowers across the country say about working with LendFriend Mortgage.
★★★★★
“LendFriend is the absolute best. I found them after I was denied by a lender due to an appraisal issue. I spoke with dozens of lenders, but LendFriend was the only one that could figure out a solution. They were able to close my jumbo loan in less than 3 weeks and hit my closing date. If you need a lender to step in and save the day, call LendFriend!”
“I recently used LendFriend for my home purchase, and they were fantastic! The team was professional, responsive, and truly caring. They explained everything clearly, answered all my questions, and made the process smooth and stress-free.
What really sets them apart is their forward-thinking approach—they accept cryptocurrency holdings as proof of income/assets, which was a game-changer for me and made qualifying so much easier. Communication was excellent, they secured a great rate, closed on time with no hidden fees, and their online portal was super easy to use.
If you want a modern lender that puts you first, embraces crypto, and delivers results, choose LendFriend. I’ll recommend them to everyone—thank you for making my dream home possible!”
“As a 1099 worker with non-traditional income history, Eric was able to think outside the box and help me find a mortgage for my first home. The company was always problem-solving and the process was seamless. I have already recommended them to several other friends and colleagues. If you are a non-traditional borrower or are looking for someone that can come up with creative solutions, check out LendFriend!”
“The team at LendFriend made buying our home in Florida so easy. We had an expiring lease and LendFriend was able to move very quickly to get us closed in under 30 days before the lease ended. They also got us a great rate on a jumbo loan and were available day and night to answer all of our questions. If you’re looking for a mortgage broker that makes the process stress-free while still getting you a great rate, you have to call LendFriend.”
“LendFriend made my homebuying experience so easy. As a business owner, I heard horror stories about how hard it can be for guys like me to get a mortgage. Thankfully I found LendFriend. Eric and the team had me approved in no time. My rate was great and they closed on time. Couldn’t ask for more.”
“Financing a home with acreage and unconventional retirement income can be overwhelming, but LendFriend Mortgage made the process smooth from beginning to end.
They were always quick to respond, answered every question we had, and explained each step in a way that was easy to understand. We always had direct access to the people actually working on our loan, which made the experience much less stressful.
What really stood out was that even after the loan funded, they continued helping and making sure we understood the next steps. There was never a feeling of “the loan closed, good luck.”
We truly appreciated the patience, communication, and support through the entire process and would absolutely recommend LendFriend Mortgage, especially for anyone with a unique financial situation or rural property purchase.”
“Eric and his team went above and beyond to help us with our home purchase. Our realtor recommended LendFriend to us and we couldn't have been happier with the recommendation. They were so nice and answered every question we had no matter how insignificant it seemed.”
Ready to Get Pre-Approved for a Conventional Loan?
Compare conventional mortgage rates across more than 40 lenders and receive a pre-approval letter you can make an offer with. Most quotes are ready in under 2 minutes.
Frequently Asked Questions
What is the difference between a conventional loan and an FHA loan?
A conventional loan is backed by private lenders and follows Fannie Mae and Freddie Mac guidelines, while an FHA loan is insured by the Federal Housing Administration. FHA allows lower credit scores and 3.5% down but charges an upfront premium plus monthly mortgage insurance that usually lasts the life of the loan. Conventional PMI can be cancelled at 20% equity, so borrowers with a 680 score or higher typically pay less over time. Our comparison of conventional and FHA loans walks through the payment difference for a first-time buyer.
What is the minimum down payment for a conventional loan?
First-time buyers can put 3% down on a primary residence through Conventional 97, and HomeReady and Home Possible extend 3% down to buyers within income limits. Repeat buyers on a primary residence need 5% down, second homes need 10%, and investment properties need 15% for a single-family home or 25% for 2 to 4 units. A 20% down payment removes PMI entirely.
What credit score is required for a conventional loan?
Fannie Mae and Freddie Mac require a minimum 620 credit score. Pricing improves in tiers from there, and a score of 740 or higher qualifies for the best conventional rates and the lowest PMI premiums. Our guide on how your credit score affects your mortgage rate shows the rate difference between tiers.
What are the conventional loan limits for 2026?
The 2026 baseline conforming loan limit is $832,750 for a one-unit property. In high-cost counties such as Los Angeles, Orange County, and the San Francisco Bay Area, the limit rises to $1,249,125. Limits are higher for 2 to 4 unit properties. Loan amounts above the applicable limit require a jumbo loan, and our explanation of FHA and conventional loan limits covers how the county limits are set.
How does private mortgage insurance work on a conventional loan?
PMI protects the lender when the down payment is below 20%. The premium is priced on credit score and loan-to-value and is added to the monthly payment, or it can be paid up front or built into the rate. Borrowers can request cancellation once the balance reaches 80% of the original value, and it ends automatically at 78%. Our guide to private mortgage insurance explains each structure and when to use it.
What debt-to-income ratio do conventional loans allow?
Most conventional loans allow a debt-to-income ratio up to 45%, and automated underwriting can approve up to 50% for borrowers with strong credit, reserves, or a larger down payment. The ratio compares total monthly debt payments, including the new mortgage, to gross monthly income. Our debt-to-income ratio explainer shows how lenders calculate it and how to lower it before applying.
Can I use gift funds for a conventional loan down payment?
Yes. Gift funds from a family member can cover the entire down payment and closing costs on a primary residence or second home. The gift must be documented with a signed letter and a paper trail showing the transfer. Gifts are not permitted on investment properties. Our guide to mortgage down payment gifts covers the documentation lenders require.
Should I choose a fixed-rate or adjustable-rate conventional loan?
A fixed rate is the right choice for buyers who plan to hold the home for the long term and want a payment that never changes. An ARM with a 5, 7, or 10-year fixed period usually carries a lower starting rate and suits buyers who expect to sell or refinance before the adjustment begins. Our comparison of fixed and variable rate mortgages shows how much the difference is worth over each holding period.
When does a jumbo loan make more sense than a conventional loan?
A jumbo loan is required once the loan amount exceeds the county conforming limit. Some buyers near the limit also compare a larger down payment that keeps the loan conforming against a smaller down payment on a jumbo loan. In high-cost markets jumbo rates are often competitive with conforming rates, and our comparison of jumbo and conventional loans lays out when each option wins.
Is it better to get a conventional loan from a mortgage broker or a bank?
A bank prices conventional loans from its own rate sheet. A mortgage broker such as LendFriend prices the same loan across more than 40 lenders and places it with whichever offers the best rate and closing costs for that borrower. The broker also handles the application, documentation, and underwriting communication. Our analysis of mortgage brokers versus banks compares the two on rate, fees, and service.
Learn More About Conventional Loans
Our Learning Center covers everything you need to know about conventional loans, from down payment requirements and PMI to credit scores, debt-to-income ratios, loan limits, and choosing between fixed and adjustable rates. Read some of our favorite articles below.
Looking for Other Mortgage Solutions?
Conventional loans fit most borrowers, but not every purchase. If the loan amount exceeds the conforming limit, your income is documented through business deposits rather than W-2s, or you are eligible for VA benefits, LendFriend offers programs built for those situations.
Jumbo Loans
Financing above the conforming loan limit for higher-value primary residences, second homes, and investment properties, with fixed, adjustable, and Non-QM jumbo structures and loan amounts up to $10 million.
Bank Statement Loans
Self-employed borrowers and business owners qualify on 12 or 24 months of personal or business bank deposits instead of tax returns, with jumbo bank statement options for higher-value homes.
.png?width=50&height=50&name=Flag%20(2).png "Flag (2)")
VA Loans
Eligible veterans and active-duty service members can purchase with no down payment and no monthly mortgage insurance, including VA jumbo loans for higher-priced homes.