Conventional Loans

Conventional loans are not insured by the government unlike FHA, VA, and USDA loans. There are 3 types of conventional loans—conforming, high balance or super conforming, and non-conforming or jumbo. 

The interest rates for conforming loans are usually 25% to .50% less than those for high balance loans, and the interest rates for high balance loans are normally .50% to .75% less than those for jumbo loans. 

The maximum loan amount for conforming loans is $726,200.  The loan range for high balance loans is $726,201 to $1,089,300. Jumbo loans are all those in excess of $1,089,300.

The minimum down payment for conforming loans is 3%, for high balance loans is 5%, and for jumbo loans is typically determined by the lenders.  With some lenders, though, it can be as low as 10%.

Loans with less than 20% down payments require mortgage insurance, and the amount can vary from lender to lender.  However, it is possible to put as little as 10% down on a jumbo loan and not have to pay mortgage insurance. Generally, it is paid monthly with the mortgage payment, but it can be paid annually.