Program
Conventional mortgages
A conventional mortgage is not insured or guaranteed by a government agency. Most conventional loans are written to standards set by Fannie Mae or Freddie Mac, which is why their requirements are relatively consistent across lenders — though every lender may add its own overlays.
This may fit if
- You have a reasonably established credit profile
- You want the option to remove mortgage insurance once you reach sufficient equity
- You are buying a second home or investment property, where government programs generally do not apply
Look at alternatives if
- Your credit profile or down payment would be better served by a government-backed program
- You are eligible for VA financing, which has meaningfully different economics
How it works
Agency standards set the baseline
Eligibility, documentation, appraisal, and property requirements follow the current agency selling guides. Those guides are updated regularly, so current terms are verified at the time of your application rather than quoted from memory.
Mortgage insurance is tied to equity
Conventional mortgage insurance generally applies below a threshold of equity and can typically be removed once sufficient equity is established. The specific rules and timing are program- and servicer-dependent.
What moves the outcome
- Loan-to-value ratio
- Drives both mortgage insurance and pricing.
- Credit profile
- Conventional pricing is more sensitive to credit than some government programs.
- Occupancy
- Primary, second home, and investment are priced and underwritten differently.
- Loan limit
- Conforming limits are set annually. Above them, the loan is a jumbo and follows different rules.
Run the numbers
Questions people actually ask
Can conventional mortgage insurance be removed?
Generally yes, once sufficient equity is established, subject to the applicable rules and your servicer's requirements. This is a meaningful difference from some government programs and worth discussing before you choose a path.
What is the conforming loan limit?
It is set annually and varies by county. We check the current published limit for your specific county rather than working from a figure that may be out of date.
Sources
Program rules change. These are the primary sources this page is written against and the ones we check before advising anyone.
- Selling Guide — Fannie Mae
- Seller/Servicer Guide — Freddie Mac
Last reviewed 17 August 2026.
Related
Talk it through with someone licensed
The page above is education. Your actual options depend on your full picture, and that takes a conversation. No credit pull, no application, no obligation.