Loan Types / Conventional
Conventional Loan Calculator
A conventional loan is the standard, non-government mortgage. Estimate your payment with private mortgage insurance, taxes, and insurance, and see when you can skip PMI.
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How conventional loans work
Conventional loans are not backed by a government program. They follow guidelines from Fannie Mae and Freddie Mac and fit most buyers with steady income and fair-or-better credit.
- Down payment: as little as 3%, or 20% to skip monthly PMI.
- Private mortgage insurance: required under 20% down, and it drops off automatically as the balance falls near 78% of value.
- Loan limit: up to about $832,750 for one unit in 2026; above that becomes a jumbo loan.
- Credit: stronger credit earns better pricing and lower PMI.
When to skip PMI
At 20% down there is no monthly PMI on a conventional loan, which often makes it the lowest total cost for buyers with savings. With less down, PMI applies but falls off over time, unlike FHA mortgage insurance, which can last the life of the loan.
Conventional vs FHA
FHA is friendlier on credit and down payment but carries mortgage insurance that can last the full term. Conventional rewards stronger credit and lets you drop PMI. Run both in the calculator to see the monthly and five-year difference for your numbers.
See your real numbers. The calculator estimates this loan next to every other type, side by side.
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Frequently asked questions
How much down payment for a conventional loan?
As little as 3% for many buyers, though 20% removes monthly private mortgage insurance and lowers your total cost.
When does PMI go away on a conventional loan?
It cancels automatically as your loan balance reaches about 78% of the original value, and you can often request removal at 80%.
What is the 2026 conventional loan limit?
The baseline conforming limit is about $832,750 for a one-unit home. Higher-cost areas allow more. Above the limit is a jumbo loan.
Is a conventional loan better than FHA?
It depends on your credit and down payment. Conventional can be cheaper with strong credit and 20% down; FHA can win with lower credit. Compare both in the calculator.
Important disclosures. LoanFitCalc is a free educational tool that provides estimates only. It is not a loan, a loan approval, a commitment to lend, a rate lock, or an offer to make a loan, and it does not provide financial, legal, or tax advice or recommend a specific loan for you. Mortgage insurance rates, funding and guarantee fees, loan limits, taxes, and insurance figures are typical published values used for estimation and are subject to change. Program eligibility rules are summarized and simplified. Actual terms depend on your full application, credit, property, and lender underwriting. Consult a licensed mortgage loan originator before making any decision. LoanFitCalc is an independent educational website and is not a lender. ⌂ Equal Housing Opportunity
