Maximum Flexibility.
Minimum Restrictions.
Conventional loans are not government-backed β which means no upfront mortgage insurance, PMI that eventually drops off, and the ability to buy investment properties and second homes that other loan types won't allow.
Not Government-Backed.
That's Actually a Feature.
A conventional loan is any mortgage not insured by a federal agency like the FHA or VA. Because there's no government guarantee, lenders set their own guidelines β which creates more flexibility in how these loans work.
Conventional loans come in two types: conforming (within Fannie Mae and Freddie Mac limits) and non-conforming/jumbo (above those limits). The 2026 conforming limit is $832,750 for a single-family home in most counties.
Quazel is a mortgage broker. We shop your conventional loan across multiple wholesale lenders β Fannie Mae, Freddie Mac, and portfolio lenders β to find the best rate and terms for your specific credit and down payment profile.
How Much Down
Do You Actually Need?
One of the biggest myths in home buying is that you need 20% down. You don't. Here's how conventional down payment options actually work:
Not sure how much to put down? We'll run the numbers both ways. Sometimes 5% down with PMI is smarter than depleting your savings for 20%. Sometimes the opposite is true. It depends on your rate, your savings, and how long you plan to stay in the home.
PMI That Actually
Goes Away
Unlike FHA's MIP, conventional PMI is not permanent. Once your loan balance reaches 80% of the original home value, you can request cancellation. At 78%, it cancels automatically. And if your home has appreciated significantly, you may be able to request an early cancellation through a new appraisal.
This single feature makes conventional loans more cost-effective than FHA for many buyers in the long run β even with a slightly higher rate.
How to get rid of PMI early: If your home has appreciated significantly since you bought it, we can order a new appraisal. If the new value puts your loan-to-value ratio at 80% or below, PMI can be removed without waiting. This happens for a lot of our Utah, Idaho, and Florida clients in rising markets.
Conforming vs Jumbo β
Where's the Line?
Conventional loans that stay within Fannie Mae and Freddie Mac limits are called conforming loans. These get packaged and sold on the secondary market, which keeps rates competitive. If your loan needs to exceed those limits, it becomes a jumbo loan with different requirements.
If your purchase price puts you close to the conforming limit, it's worth discussing strategy with your Loan Officer. Sometimes a slightly larger down payment keeps you conforming β which can mean a better rate than a jumbo loan would offer.
See What a Conventional Loan
Actually Costs Monthly
est. tax & insurance
Other Programs
Worth Knowing About
Let's Find You
The Right Rate
As a mortgage broker, we shop conventional loans across multiple wholesale lenders. That means you get the best rate available β not just whatever one bank offers. Takes 15 minutes to find out where you stand.
New Point Lending, DBA Quazel Mortgage Β· NMLS #2133626 Β· Licensed in UT Β· ID Β· FL Β· CO Β· Equal Housing Opportunity