Jumbo Loans vs. Conventional Loans

Conventional loans are the most common mortgages available. Conventional loans are split into “conforming” and “non-conforming” loans. Their limits are set by looking at the total sum of the loan and the way it corresponds with FHFA guidelines. The maximum amount varies depending on the area.

​​This particular loan may be the right choice for future homeowners with a high credit score and enough savings to afford a higher down payment. There is a certain flexibility when it comes to the down payments on these mortgage loans, the most common one being 20%, but some conventional mortgage loans require only a down payment of as little as 3%.

​​Generally, conventional loans run for 30 years, but there are also some that run for 15 or 20 years. It all depends on the repayment plan agreed upon when first signing. The guidelines either fall under FHFA regulations if the loan is conforming or will be agreed upon by the lender if it is non-conforming.