Conventional Home Loans
Clear, plain-English answers to the questions buyers ask about conventional financing, from down payments and PMI to conforming limits and jumbo loans.
Last reviewed September 9, 2026
What is a conventional home loan?
A conventional mortgage is a home loan that is not insured or guaranteed by a federal housing program such as FHA, VA or USDA. Conventional loans may be conforming or non-conforming and can include low-down payment options for eligible borrowers.
Lisa is a REALTOR®, not a mortgage loan officer. She helps with the property side of your purchase and coordinates the transaction; the appropriately licensed lender determines loan qualification, eligibility, pricing and approval. Program details, including conforming loan limits (set annually by the FHFA and varying by location), change over time. Verify what applies to you with a current, authoritative source and your lender.
Understand the Conventional Family
Conventional loans are not one product. They divide into conforming and non-conforming, they may or may not carry PMI, and they include jumbo financing for higher-priced homes. These guides walk through each piece.
Everything in this center is part of the wider Financing a Home Resource Center, including mortgage basics, preapproval, affordability, closing costs and more. Note that FHA-specific financing guides are covered separately; this hub focuses on the conventional side of the comparison.
What Is a Conventional Mortgage?
The basics: how a conventional mortgage works and how it differs from FHA, VA and USDA loans.
Read the guideConventional vs. FHA
Down payments, mortgage insurance, credit and property requirements compared.
Read the guideConventional vs. VA
What eligible veterans should compare before choosing a loan label.
Read the guideConventional Down Payment
Why 20% is not a rule, how low-down-payment options work, and when PMI applies.
Read the guidePrivate Mortgage Insurance (PMI)
What PMI is, who it protects, what it costs and when it may come off.
Read the guideRemoving PMI
How cancellation and automatic termination work, and why the rules are specific.
Read the guideConforming Loans
Fannie Mae and Freddie Mac standards, conforming loan limits and what they mean.
Read the guideNon-Conforming Loans
When a loan falls outside standard conforming parameters, including jumbo.
Read the guideJumbo Loans
Higher-dollar financing for luxury homes in Las Vegas, Henderson and Summerlin.
Read the guideJumbo vs. Conventional
The direct comparison for higher-price buyers: limits, reserves, appraisal and underwriting.
Read the guideFHA Home Loans
The FHA alternative: down payments, mortgage insurance, condos, manufactured homes, appraisals and seller concessions.
Read the guideConforming, Non-Conforming and Jumbo at a Glance
Conforming
Meets applicable standards for purchase by Fannie Mae or Freddie Mac and falls within current conforming loan limits. Limits are set annually by the FHFA and vary by location.
Conforming loans explainedNon-Conforming
A loan that does not meet one or more requirements for standard Fannie Mae or Freddie Mac conforming financing. Jumbo loans are a common form of non-conforming financing.
Non-conforming loans explainedJumbo
Generally a conventional loan whose amount exceeds the applicable conforming loan limit for the property location. Jumbo financing can involve stricter underwriting, larger reserves and more complex appraisals, and is especially relevant for higher-priced Las Vegas homes.
Jumbo loans in Las VegasDo not rely on a printed conforming limit from any article. The Federal Housing Finance Agency (FHFA) sets conforming loan limits annually, and limits can differ in high-cost areas. Check current limits with FHFA or your lender.
Frequently Asked Questions
Is a conventional loan the same as a conforming loan?
Not always. A conforming loan is a type of conventional loan that meets applicable Fannie Mae/Freddie Mac standards.
Do conventional loans require 20% down?
No. Some qualifying conventional programs may allow eligible borrowers to put down less, though PMI may then apply.
What is the difference between conforming, non-conforming and jumbo?
A conforming loan meets standards for purchase by Fannie Mae or Freddie Mac and falls within current conforming loan limits. A non-conforming loan does not meet one or more of those standards, and jumbo loans are a common form of non-conforming financing for amounts above the conforming limit.
Is PMI the same as FHA mortgage insurance?
No. PMI on certain conventional mortgages and FHA mortgage insurance premiums are different structures with different cancellation rules.
Can a first-time buyer use conventional financing?
Yes, if qualified.
How Lisa Helps
Lisa can help you evaluate whether a particular property is likely to create issues that matter to the financing conversation: condo projects, property condition, multiple units, manufactured housing, HOA and solar obligations, or appraisal concerns. The lender determines whether conventional financing is approved. Lisa helps make sure the property search and transaction strategy reflect those financing realities.
Reviewed by Lisa C Hamilton
REALTOR®, NV License S.168195, with THE Brokerage, A Real Estate Firm
Understand the loan family. Then build the search around it.
Lisa helps you translate an approved financing plan into properties that actually fit, and coordinates the offer so the real estate side supports the loan.
Mortgage qualification, rates, loan amounts, and program eligibility are determined by your lender and current program rules, not by Lisa. Always verify current figures with an appropriately licensed mortgage professional or the CFPB, and with the applicable agency (FHFA, HUD/FHA, VA, Fannie Mae or Freddie Mac).