Conventional Loan Requirements in 2026: The Complete Checklist
Conventional financing remains the most common way to buy a home, and the rules shifted meaningfully heading into 2026. Here's what actually applies today.
What changed recently
In late 2025, Fannie Mae removed its blanket minimum credit score requirement from its underwriting guidelines, shifting toward a broader, file-wide risk assessment rather than one universal cutoff. In practice, this doesn't mean "no credit score needed" — individual lenders still set their own minimum, commonly around 620, as a business decision independent of Fannie Mae's guidelines.
The checklist
PMI and how to avoid it
Putting down less than 20% means paying private mortgage insurance until you reach roughly 78-80% loan-to-value. PMI cancels automatically at 78% and can be requested for removal at 80%, unlike FHA insurance, which often lasts for the life of the loan.
Conforming loan limits keep rising
Conforming loan limits (the maximum a conventional loan can be while still qualifying for standard Fannie Mae/Freddie Mac terms) increase most years to track home price growth, with higher limits in expensive counties. Ask your loan officer for the current limit in your county before assuming you need a jumbo loan.
See if you qualify today
Get a real answer on credit, down payment and loan amount in one conversation.
See Conventional Loan Details