Our conventional loan calculator estimates the monthly cost of a mortgage that is not insured or guaranteed by a federal housing agency.
The calculator is most useful when it shows the full housing payment and allows you to compare down payment levels.
A smaller down payment reduces the cash needed upfront but usually creates a larger loan balance and can add private mortgage insurance. A larger down payment reduces the amount financed but uses more cash at closing.
You can use our down payment savings calculator to get an idea of what saving up a down payment could mean based on your price range.
Conventional Loan Calculator Basics
| Input or Output |
What It Means |
| Home price |
The assumed purchase price used to calculate the down payment and loan amount. |
| Down payment |
The cash portion of the purchase price not financed by the first mortgage. |
| Interest rate and term |
Drive the scheduled principal-and-interest payment. |
| Taxes and insurance |
Property-level costs that are commonly included in the monthly housing payment. |
| PMI |
Private mortgage insurance that may apply when a conventional first mortgage starts above 80% loan-to-value. |
| HOA dues |
Association charges that can affect both the monthly budget and mortgage qualification. |
What Is a Conventional Loan?
A conventional mortgage is a home loan that is not insured by FHA, guaranteed by VA, or guaranteed by USDA Rural Development. Many conventional mortgages are eligible for purchase by Fannie Mae or Freddie Mac and are called conforming loans.
Conventional does not mean one fixed product. Conventional mortgages can differ by loan term, fixed or adjustable rate, down payment, occupancy, property type, underwriting method, mortgage insurance, and whether the loan conforms to the annual loan limits.
Conforming vs. Jumbo Loans
FHFA set the 2026 baseline conforming loan limit for a one-unit property at $832,750 in most of the United States. The one-unit ceiling in high-cost areas is $1,249,125. Alaska, Hawaii, Guam, and the U.S. Virgin Islands have separate special statutory calculations.
A loan above the applicable conforming limit is generally a jumbo loan rather than a conforming conventional loan. The relevant comparison is the mortgage amount, not simply the home's purchase price. A high-priced home can still use a conforming loan if the down payment brings the first mortgage within the applicable county limit.
How Conventional Differs From FHA, VA, and USDA
FHA, VA, and USDA mortgages have federal insurance or guarantee structures and their own eligibility rules. Conventional mortgages rely on private credit risk standards and, when required, private mortgage insurance.
FHA requires at least a 3.5% minimum required investment. FHA mortgage insurance rules, including how long annual mortgage insurance applies, depend on the loan terms and the FHA case-number rules in effect for the mortgage. VA and USDA can provide no-down-payment purchase financing to eligible borrowers and properties under their program rules.
You can use our FHA vs. Conventional Calculator to compare those cost structures using the same home-price assumptions. Our FHA Loan Calculator provides an FHA-specific payment estimate.
Conventional Down Payment Options
The 3%, 5%, 10%, and 20% grid shows the tradeoff between upfront cash and the amount financed. These are calculator scenarios, not four universal program tiers.
3% Down
Fannie Mae HomeReady and Freddie Mac Home Possible can permit 97% loan-to-value financing for eligible purchases. Both generally apply an 80% area median income limit under current rules. PMI commonly applies when a conventional first mortgage starts above 80% loan-to-value.
5% Down
Five percent down reduces the starting balance compared with 3% down. Rate and PMI treatment still depend on the borrower, property, and loan pricing.
10% Down
At 10% down, the first mortgage starts at 90% loan-to-value, so PMI can still apply. A separate piggyback second mortgage has different rates, fees, payments, and qualification rules.
20% Down
A conventional first mortgage starting at 80% loan-to-value generally does not require borrower-paid PMI at origination. On a $400,000 home, 20% down is $80,000 before closing costs.
How PMI Works on a Conventional Loan
Private mortgage insurance protects the lender or investor against part of a loss if the borrower defaults. Its cost varies with loan-to-value ratio, credit characteristics, coverage, loan term, property, and insurer pricing.
Borrower-Paid Monthly PMI
Monthly borrower-paid PMI is added to the payment until cancellation or termination requirements are met. A calculator uses an estimated premium. The actual premium comes from mortgage insurance pricing for the loan. Our PMI Calculator focuses on estimated PMI cost and removal milestones.
Single-Premium and Lender-Paid Alternatives
Some conventional loans use a single premium or lender-paid mortgage insurance instead of a separate monthly premium. Those structures shift where the cost appears and should be compared using the written loan terms.
Automatic PMI Termination Under HPA Conditions
The CFPB explains that, for mortgages covered by the Homeowners Protection Act, borrower-paid PMI generally terminates automatically on the scheduled termination date when the borrower is current and other HPA conditions apply. That date is when the scheduled principal balance first reaches 78% of the property's original value.
Requesting Earlier PMI Cancellation
Eligible borrowers can request cancellation at the applicable 80% original-value point under HPA conditions. The request can require current status, a good payment history, no disqualifying subordinate lien, and evidence that the property's value has not fallen below original value. Extra principal can advance a borrower-requested cancellation point, but it does not move the HPA scheduled automatic termination date.
What Drives the Monthly Payment Beyond Principal and Interest?
A full payment estimate can include property taxes, homeowners insurance, PMI, and association dues in addition to principal and interest. Our Income Needed Calculator can translate those payment assumptions into an estimated qualifying-income scenario.
Property Taxes
Property taxes depend on local rates, assessed value, and exemptions, and they can change after purchase.
Homeowners Insurance
Insurance varies by property, location, coverage, deductible, and insurer. Other required coverage can add to the housing expense.
HOA Dues
Required association dues can affect both the monthly budget and mortgage qualification.
Worked Example: $400,000 Home With 5% Down
Assume a $400,000 home, 5% down, a 30-year fixed mortgage at 6.5%, property taxes equal to 1.1% of the price per year, homeowners insurance equal to 0.35% per year, and no association dues.
| Component |
Illustrative Amount |
| Home price |
$400,000 |
| 5% down payment |
$20,000 |
| Starting loan amount |
$380,000 |
| Principal and interest at 6.5% |
About $2,402 per month |
| Property taxes at 1.1% per year |
About $367 per month |
| Homeowners insurance at 0.35% per year |
About $117 per month |
| Payment before PMI and HOA |
About $2,886 per month |
| PMI |
Varies by borrower and mortgage insurance pricing |
The 3%, 5%, 10%, and 20% comparison grid should be read the same way. Smaller down payment scenarios show how a larger loan balance changes principal and interest and can add PMI. Higher down payment scenarios show the effect of financing less. Taxes and insurance do not necessarily fall in proportion to the loan amount because they are tied to the property and coverage.
Conventional and FHA Cost Differences
Neither conventional nor FHA financing is universally less expensive. The comparison depends on credit, down payment, interest rate, mortgage insurance, loan amount, property, and eligibility.
Conventional PMI can be cancelled or terminated under applicable HPA and investor conditions. FHA uses upfront and annual mortgage insurance, with duration and cancellation treatment determined by the FHA case-number rules, loan term, and original loan-to-value that apply to the mortgage. Conventional pricing can also change with credit and loan-to-value factors, without a fixed rate discount for each down payment tier.
Prepare Questions for a Lender
- Which conventional programs am I eligible for at 3%, 5%, 10%, and 20% down?
- What PMI premium or mortgage insurance structure applies to each down payment scenario?
- Is the loan conforming under the 2026 county loan limit for this property?
- What taxes, insurance, and association dues are included in the qualifying housing payment?
- Under what conditions could I request PMI cancellation, and when would HPA automatic termination apply?
- How do the rate, lender fees, and cash to close change across the down payment options?
The Bottom Line
A conventional loan calculator compares the full monthly payment and the tradeoff between cash down and amount financed. Eligible borrowers can have options as low as 3% down, while a conventional first mortgage starting at 80% loan-to-value generally avoids borrower-paid PMI at origination.
The 3%, 5%, 10%, and 20% grid is a scenario comparison. Actual PMI, pricing, taxes, insurance, eligibility, and cash to close come from the specific transaction and loan terms.
FAQ
What Is a Conventional Loan?
A conventional loan is a mortgage not insured or guaranteed by FHA, VA, or USDA. Many conventional loans conform to Fannie Mae or Freddie Mac standards and annual loan limits.
How Much Down Payment Do I Need for a Conventional Loan?
Some eligible conventional programs allow 3% down. Other transactions may use 5%, 10%, 20%, or another amount depending on program eligibility and loan structure.
How Long Do I Have to Pay PMI on a Conventional Loan?
It depends on the loan. For mortgages covered by the HPA, eligible borrowers can request cancellation at the applicable 80% original-value point under HPA conditions. Borrower-paid PMI generally terminates automatically on the scheduled 78% original-value termination date when the borrower is current and other HPA conditions apply.
Can I Get a Conventional Loan With 3% Down?
Yes, if the borrower and transaction meet a program's eligibility rules. Fannie Mae HomeReady and Freddie Mac Home Possible are two 3%-down examples.
What Credit Score Do I Need for a Conventional Loan?
There is no single score for every conventional loan. Fannie Mae manual fixed-rate underwriting specifies a 620 minimum representative credit score, while Desktop Underwriter casefiles do not have one universal minimum. Other programs and lenders can differ.
Is a Conventional Loan Better Than FHA?
Neither is universally better. They use different down payment, mortgage insurance, credit, and underwriting structures. FHA mortgage insurance rules also depend on the FHA case number and loan terms.
What Is the Conforming Loan Limit for 2026?
The 2026 baseline one-unit conforming loan limit is $832,750 in most of the United States, with a one-unit high-cost-area ceiling of $1,249,125. County, unit count, and special statutory areas can change the applicable limit.
This is an educational tool, not a loan offer. Results are estimates and do not represent a Loan Estimate, commitment to lend, credit decision, or guarantee of loan availability. Actual loan terms, payments, costs, qualification, and eligibility depend on the borrower, property, loan program, lender requirements, and market conditions.
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