Conventional loan
The everyday mortgage, priced for strong borrowers
Fannie Mae and Freddie Mac loans with as little as 3% down and mortgage insurance that drops off as you build equity.
Conventional loan: how it works
A conventional loan is not backed by a government agency. Instead it follows guidelines set by Fannie Mae and Freddie Mac, which is why it is often called a conforming loan. In Suffolk, Middlesex and Norfolk counties the 2026 conforming limit for a single-family home is $806,500, and higher for two to four unit properties.
Because the lender carries more of the risk, pricing rewards strong credit and larger down payments. Put down 20% and there is no mortgage insurance at all. Put down less, and private mortgage insurance (PMI) is added until your balance falls to 78% of the original value, or earlier if you request cancellation at 80%.
For many Greater Boston buyers, conventional financing is the most flexible path: it works for condos, triple-deckers, second homes and investment properties, and it is the loan sellers' agents are most comfortable seeing in an offer.
What's included with Harborview
- Fixed-rate and adjustable-rate options
- Primary homes, second homes and investment properties
- Condos, townhouses and 2 to 4 unit properties
- Gift funds allowed for down payment
- Seller credits up to 3% to 9% toward closing costs
- PMI that cancels automatically at 78% loan-to-value
The process, step by step
Your loan officer stays with you the whole way, and you get status updates by text at every milestone.
Pre-approval
We review credit, income and assets, then issue a written pre-approval you can attach to offers.
Rate and structure
Compare terms, points and PMI options side by side with real numbers.
Underwriting
Our in-house underwriters in Boston review your file, usually within 48 hours.
Appraisal and closing
We order the appraisal, clear conditions and close with your attorney.
Benefits worth knowing
No upfront insurance fee
Unlike FHA, there is no upfront mortgage insurance premium added to your balance.
PMI goes away
Monthly insurance ends on its own as you pay down the loan or your home appreciates.
Works for more property types
Investment properties and second homes on the Cape qualify, not just primary residences.
Qualifying guidelines
General guidelines only. Exceptions and overlays apply, and your loan officer will review your situation.
| Factor | Guideline |
|---|---|
| Credit score | 620 minimum; best pricing at 760 and above |
| Debt-to-income | Up to 45%, and up to 50% with strong compensating factors |
| Down payment | 3% to 5% minimum; 20% avoids PMI |
| Reserves | 0 to 6 months depending on property type and occupancy |
| Waiting period | 4 years after bankruptcy, 7 years after foreclosure |
Related programs
Buy a homeFHA loan
Insured by the Federal Housing Administration, FHA loans make ownership reachable with lower scores and smaller savings.
Learn more
Buy a homeFirst-time buyer programs
MassHousing, ONE Mortgage and down payment assistance options, plus a loan officer who walks you through every step.
Learn more
Buy a homeJumbo loan
Portfolio and investor jumbo loans for Back Bay condos, Brookline colonials and Cape Cod second homes.
Learn more
Conventional questions
More answers in our full FAQ.
No. First-time buyers can put down 3% and others 5%. Below 20% you pay private mortgage insurance, which ends once you reach enough equity.
For 2026 the baseline single-family limit is $806,500 in most counties. Loans above that amount are jumbo loans with separate guidelines.
Yes. Two to four unit properties qualify with higher loan limits, and rental income from the other units can help you qualify.
Typically 0.2% to 1.2% of the loan amount per year, depending on your credit score and down payment. We quote it alongside your rate.
Ready to see your Conventional numbers?
A pre-approval takes about 10 minutes online and does not affect your credit score. A local loan officer follows up the same day.
- Soft credit check
- 24-day average close
- 4.9 from 1,284 reviews
