Conventional loans — the foundation of home financing.
Fixed-rate and adjustable-rate mortgages for primary residences, second homes, and investment properties across Colorado and Florida. Flexible terms, competitive rates, and PMI you can remove.
Program guidelines at a glance
Rough guidelines only — actual qualification depends on the full loan file (credit depth, reserves, property type, occupancy, and investor overlays). We'll confirm your exact numbers in writing.
| Guideline | Primary Residence Owner-occupied | Second Home Vacation / mountain town | Investment Property Conventional financed rental |
|---|---|---|---|
| Min FICO | 620 Best pricing at 740+; tiered every 20 pts | 640 Best pricing at 740+ | 680 720+ preferred |
| Min down payment | 3% (first-time) · 5% (repeat) PMI removable at 80% LTV | 10% Some shelves require 15% in 2026 | 15% (1 unit) · 25% (2-4 units) |
| Max DTI | 45%–50% with AUS approval | 45% | 45% (rent counted at 75%) |
| Reserves | 0–2 months (1 unit) · 6 months (2-4 units) | 2 months on subject + 2 months on each other financed property | 6 months on subject + 2 months on each other financed property |
| Conforming limit (2026) | $832,750 baseline · up to $1,209,750 in high-cost CO/FL counties | Same as primary | Same as primary |
| Occupancy | Primary 1-4 units | Second home (not rented full-time) | Non-owner-occupied 1-4 units |
| Mortgage insurance | PMI required <20% down; auto-removes at 78% LTV | PMI required <20% down | PMI required <20% down (significant cost) |
| Cash-out refi | Up to 80% LTV (1 unit) · 75% (2-4 units) | Up to 75% LTV | Up to 75% LTV (1 unit) · 70% (2-4 units) |
| Doc type | Full doc (W-2 / tax returns) | Full doc | Full doc · max 10 financed properties (Fannie) |
Primary Residence
Owner-occupied
- Min FICO
- 620Best pricing at 740+; tiered every 20 pts
- Min down payment
- 3% (first-time) · 5% (repeat)PMI removable at 80% LTV
- Max DTI
- 45%–50% with AUS approval
- Reserves
- 0–2 months (1 unit) · 6 months (2-4 units)
- Conforming limit (2026)
- $832,750 baseline · up to $1,209,750 in high-cost CO/FL counties
- Occupancy
- Primary 1-4 units
- Mortgage insurance
- PMI required <20% down; auto-removes at 78% LTV
- Cash-out refi
- Up to 80% LTV (1 unit) · 75% (2-4 units)
- Doc type
- Full doc (W-2 / tax returns)
Second Home
Vacation / mountain town
- Min FICO
- 640Best pricing at 740+
- Min down payment
- 10%Some shelves require 15% in 2026
- Max DTI
- 45%
- Reserves
- 2 months on subject + 2 months on each other financed property
- Conforming limit (2026)
- Same as primary
- Occupancy
- Second home (not rented full-time)
- Mortgage insurance
- PMI required <20% down
- Cash-out refi
- Up to 75% LTV
- Doc type
- Full doc
Investment Property
Conventional financed rental
- Min FICO
- 680720+ preferred
- Min down payment
- 15% (1 unit) · 25% (2-4 units)
- Max DTI
- 45% (rent counted at 75%)
- Reserves
- 6 months on subject + 2 months on each other financed property
- Conforming limit (2026)
- Same as primary
- Occupancy
- Non-owner-occupied 1-4 units
- Mortgage insurance
- PMI required <20% down (significant cost)
- Cash-out refi
- Up to 75% LTV (1 unit) · 70% (2-4 units)
- Doc type
- Full doc · max 10 financed properties (Fannie)
3% down options
First-time buyers can purchase with as little as 3% down. Repeat buyers typically need 5%.
Removable PMI
Unlike FHA, conventional PMI can be removed once you reach 20% equity — through payments, appreciation, or refinance.
Primary, second & investment
Conventional loans work for owner-occupied homes, vacation properties, and rental investments with flexible occupancy rules.
How conventional loans work
Conventional loans follow guidelines established by Fannie Mae and Freddie Mac. Because they aren't backed by the government, lenders take on more risk — which means stricter credit and income requirements, but also more flexibility in loan terms, property types, and occupancy.
Down payment: 3% for qualified first-time buyers (HomeReady, Home Possible), 5% for most repeat buyers. Second homes typically require 10%, and investment properties 15–25%.
PMI: Required below 20% down. Monthly cost varies by credit score and down payment. Can be removed via refinance, principal paydown, or home appreciation once you hit 80% loan-to-value.
Loan limits: $832,750 for most counties in 2026. High-cost areas up to $1,249,125 (Eagle County). Loans above these limits are classified as jumbo.
Fixed vs. ARM: 30-year fixed is the most popular, providing payment stability. 15-year fixed builds equity faster with lower rates. 5/1, 7/1, and 10/1 ARMs offer lower initial rates for buyers who plan to move or refinance within the fixed period.
Who conventional loans are best for
- Buyers with strong credit (680+) and stable income
- First-time buyers using 3% down programs
- Move-up buyers with equity from a previous home
- Second-home and vacation property buyers
- Real estate investors purchasing rental properties
- Borrowers who want to eliminate mortgage insurance
Conventional loans by city
Conventional loans are the most versatile option — here's where we help buyers most in Colorado and Florida.
Conventional loans in Montrose
Median: $465K
View guideConventional loans in Ridgway
Median: $785K
View guideConventional loans in Ouray
Median: $695K
View guideConventional loans in Grand Junction
Median: $415K
View guideConventional loans in Durango
Median: $725K
View guideConventional loans in Denver
Median: $575K
View guideConventional loans in Boulder
Median: $895K
View guideConventional loans in Fort Collins
Median: $555K
View guideConventional loans in Colorado Springs
Median: $465K
View guideConventional loans in Pueblo
Median: $285K
View guideConventional loans in Steamboat Springs
Median: $1.15M
View guideConventional loans in Gunnison
Median: $565K
View guideConventional loans in Salida
Median: $595K
View guideConventional loans in Pagosa Springs
Median: $575K
View guideConventional loans in Cortez
Median: $345K
View guideConventional loans in Delta
Median: $365K
View guideConventional loans in Glenwood Springs
Median: $745K
View guideConventional loans in Carbondale
Median: $1.05M
View guideConventional loans in Buena Vista
Median: $555K
View guideConventional loans in Leadville
Median: $465K
View guideConventional loans in Estes Park
Median: $695K
View guideConventional loans in Breckenridge
Median: $1.3M
View guideConventional loans in Frisco
Median: $875K
View guideConventional loans in Silverthorne
Median: $750K
View guideConventional loans in Avon & Edwards
Median: $895K
View guideConventional loans in Castle Rock
Median: $615K
View guideConventional loans in Parker
Median: $595K
View guideConventional loans in Highlands Ranch
Median: $635K
View guideConventional loans in Lakewood
Median: $545K
View guideConventional loans in Arvada
Median: $555K
View guideConventional loans in Aurora
Median: $455K
View guideConventional loans in Thornton
Median: $485K
View guideConventional loans in Westminster
Median: $505K
View guideConventional loans in Broomfield
Median: $565K
View guideConventional loans in Greeley
Median: $395K
View guideConventional loans in Loveland
Median: $515K
View guideConventional loans in Longmont
Median: $545K
View guideConventional loans in Woodland Park
Median: $475K
View guideConventional loans in Cañon City
Median: $335K
View guideConventional loans in Alamosa
Median: $245K
View guideConventional loans in Naples
Median: $795K
View guideConventional loans in Sarasota
Median: $525K
View guideConventional loans in Tampa
Median: $415K
View guideConventional loans in Cape Coral
Median: $385K
View guideConventional loans in Fort Myers
Median: $365K
View guideConventional loans in Jacksonville
Median: $315K
View guideConventional loans in Orlando
Median: $385K
View guideConventional loans in Miami
Median: $625K
View guideConventional loans in Pensacola
Median: $295K
View guideConventional guidelines by state
We're licensed in Colorado and Florida. Guidelines, limits, and insurance requirements differ — start with your state.
Conventional loans in Colorado
Colorado-specific Conventional guidelines — county loan limits, CHFA pairing, mountain and Front Range property considerations.
Read the state guideConventional loans in Florida
Florida-specific Conventional guidelines — condo and HOA review, wind/flood insurance escrows, and coastal county limits.
Read the state guideConventional loan FAQs
What is a conventional loan?
A conventional loan is a mortgage that is not insured or guaranteed by the federal government (unlike FHA, VA, or USDA). It follows guidelines set by Fannie Mae and Freddie Mac, offering fixed-rate and adjustable-rate options with competitive terms for qualified borrowers.
What down payment do I need?
Conventional loans require as little as 3% down for first-time buyers and 5% for repeat buyers. However, putting down less than 20% requires private mortgage insurance (PMI), which can be removed once you reach 20% equity.
What credit score do I need?
Most conventional lenders require a minimum credit score of 620, but the best rates and terms are reserved for scores of 740 or higher. Borrowers with scores between 620–679 can still qualify but may pay slightly higher rates.
What are the conforming loan limits?
In 2026, the baseline conforming loan limit is $832,750 for a single-family home in most Colorado and Florida counties. High-cost counties (like Eagle, Garfield, Pitkin, Summit, Boulder, Denver, and Monroe/Keys) have limits up to $1,249,125.
How does PMI work on conventional loans?
Private mortgage insurance (PMI) is required when your down payment is less than 20%. It typically costs 0.3–1.5% of the loan amount annually. Unlike FHA mortgage insurance, PMI can be removed once your loan balance reaches 80% of the home's original value — either through payments, appreciation, or a combination.
Should I choose a fixed or ARM rate?
A fixed-rate mortgage keeps the same rate for the life of the loan (typically 15 or 30 years), providing payment stability. An adjustable-rate mortgage (ARM) starts with a lower fixed rate for an initial period (5, 7, or 10 years) then adjusts periodically. ARMs are ideal if you plan to sell or refinance before the adjustment period.
Can I use a conventional loan for a second home or investment property?
Yes — conventional loans are the primary financing option for second homes (typically 10% down) and investment properties (15–25% down). Unlike government-backed loans, conventional financing has no occupancy restrictions.
What is the conventional conforming loan limit in Colorado for 2026?
In most Colorado counties, the 2026 conventional conforming limit is $832,750 for a single-family home. High-cost counties go higher: Eagle County (Vail) $1,249,125; Pitkin/Garfield $1,209,750; Summit/Lake $1,092,500; Routt/Moffat $1,089,050; Grand $883,200; Denver metro $862,500; Boulder $879,750. Source: FHFA (fhfa.gov).
What is the conventional conforming loan limit in Florida for 2026?
In most Florida counties, the 2026 conforming limit is $832,750 for a single-family home. Monroe County (Key West/Florida Keys) is the only Florida high-cost county at $990,150. All other Florida counties — including Collier (Naples), Hillsborough (Tampa), Sarasota, Lee (Fort Myers), and Okaloosa (Destin) — use the standard $832,750 limit. Source: FHFA.
What is the minimum down payment for a conventional loan?
Conventional loans allow as little as 3% down for first-time buyers (Fannie Mae HomeReady or Freddie Mac Home Possible) and 5% down for repeat buyers. With less than 20% down, private mortgage insurance (PMI) is required but can be removed when you reach 20% equity — unlike FHA's lifetime MIP.
How does conventional PMI compare to FHA mortgage insurance?
Conventional PMI is typically cheaper than FHA MIP for borrowers with good credit (700+ FICO, 10%+ down). More importantly, PMI can be canceled once you reach 20% equity; FHA MIP is permanent for the life of the loan on most post-2013 FHA loans. Over 7 years on a $400,000 loan, the PMI savings from choosing conventional can exceed $10,000.
Can I use a conventional loan for a second home or vacation property?
Yes — conventional loans allow second-home purchases with as little as 10% down at favorable (primary-residence-adjacent) rates. The property must be suitable for year-round use and not subject to a mandatory rental program. This is the preferred structure for buyers in Telluride, Steamboat, Breckenridge, Naples, and Destin who intend to use the property personally for part of the year.
What credit score do I need for a conventional loan?
Most conventional loan programs require a minimum FICO of 620, though the best rates are reserved for 740+. Below 680, you'll face pricing adjustments (LLPAs) that make conventional less competitive versus FHA in some scenarios. We run side-by-side comparisons to show you which program is most cost-effective for your specific credit profile.
Can I use gift funds for a conventional loan down payment?
Yes — conventional loans (Fannie Mae and Freddie Mac) allow 100% of the down payment to come from gift funds for primary residences. The gift must come from a family member (defined broadly to include domestic partners and fiances) with a signed gift letter. For second homes and investment properties, gift fund usage is more restricted.
Get pre-approved for a conventional loan
Fixed-rate, ARM, and low-down-payment conventional options for Colorado and Florida buyers. Fast, free pre-approval.
Related loan programs
Not sure this is the right fit? Explore other programs we originate.
Compare & county limits
FHA vs Conventional
Down payment, PMI, credit score side-by-side.
Read moreJumbo vs Conventional
When you cross the conforming threshold.
Read moreDSCR vs Conventional
Investor financing without W-2s or DTI.
Read moreDenver County limits
High-balance conforming up to $862,500.
Read moreBoulder County limits
High-cost conforming up to $879,750.
Read moreMiami-Dade County limits
Florida conforming and FHA thresholds.
Read more