Caleb Adams
Licensed Mortgage Broker
Unlock Lower Rates and Broader Property Options with a Conventional Loan
The credit requirements for conventional loans are typically stricter, with lenders looking for a credit score of at least 620 or higher.
However, borrowers with excellent credit may be able to secure a lower interest rate and better terms on a conventional loan. Conventional loans can be used to purchase a variety of property types, including single-family homes, multi-unit properties, and condominiums.
Conventional loans are not backed by the government and are subject to the lender’s guidelines and underwriting standards.
Typically require a higher down payment of 5% to 20% of the purchase price
Credit requirements are typically stricter than FHA loans, with lenders typically looking for a credit score of at least 620
Borrowers with excellent credit may be able to secure lower interest rates and better terms on a conventional loan compared to an FHA loan..
Conventional loans offer options for fixed or adjustable interest rates
Conventional loans can be used to purchase a variety of property types, including single-family homes, multi-unit properties, and condominiums
Conventional loans do not require mortgage insurance if the borrower puts down at least 20% of the purchase price
Conventional loans offer options for refinancing, including cash-out refinancing and rate-and-term refinancing, which can help borrowers lower their monthly mortgage payments or access equity in their home.
A conventional loan is the most common type of mortgage in the country, and for a lot of buyers in Utah and Idaho it’s the best value available. It isn’t backed by a government agency like FHA, VA, or USDA. Instead, most conventional loans follow guidelines set by Fannie Mae and Freddie Mac, which is why you’ll also hear them called “conforming” loans.
I’m Caleb Adams, a licensed mortgage broker based in North Logan, Utah. I help buyers and homeowners across Utah and Idaho (and Texas) compare conventional loans from many wholesale lenders. Conventional guidelines are standardized, but pricing is not. Two lenders can offer the same loan with noticeably different costs, and shopping that for you is a big part of what I do. I work directly with every client and look at your full picture, not just one number.
Every lender adds its own rules on top of Fannie Mae and Freddie Mac guidelines, but here’s the general picture.
The Federal Housing Finance Agency (FHFA) sets the maximum loan size Fannie Mae and Freddie Mac will buy. For 2026, the baseline limits for most of the country are:
The baseline applies to most counties in Utah and Idaho, including Bannock and Bonneville counties in Idaho. In Idaho, Teton County is a high-cost area with a 2026 one-unit limit of $1,249,125, which is the national ceiling. A few Utah counties, including resort areas like Summit and Wasatch, also have limits above the baseline. If you’re buying in one of those areas, I’ll confirm the exact limit for your county before we lock anything in. Loan amounts above your county limit fall into jumbo territory, which has its own guidelines.
If you put less than 20% down on a conventional loan, you’ll usually pay private mortgage insurance, or PMI. It protects the lender, not you, but it’s what makes a low down payment possible. What you pay depends mostly on your credit score and how much you put down.
The good news is that conventional PMI doesn’t last forever. Under federal rules, you can ask your servicer to cancel it once your balance reaches 80% of your home’s original value, as long as you’re current on payments and meet the other conditions. It automatically drops off when your balance is scheduled to reach 78% of the original value. Some borrowers also get it removed earlier based on a new appraisal after their home has gone up in value, depending on the servicer’s rules.
There are other ways to handle mortgage insurance too, like lender-paid PMI built into the rate or a single upfront premium. I’ll show you the options side by side.
Fannie Mae and Freddie Mac both offer programs that allow 3% down for qualified buyers:
There’s also a standard conventional 3% down option for first-time buyers without the income cap. Which one wins depends on your income, credit, and the property, and it’s something I’ll run for you.
Your costs include your interest rate, any PMI, and closing costs such as lender fees, appraisal, title, and escrow. Conventional pricing is risk-based, so your credit score, down payment, property type, and occupancy all affect the rate. Here’s a purely hypothetical illustration of why that matters: on a $400,000 loan, a pricing difference of 0.25% in rate works out to roughly $60 to $70 a month. That’s why comparing lenders is worth the effort. I’ll give you written estimates so you can see exactly where your money goes.
I’m based in Cache Valley and focus on Logan and Southeast Idaho, and I’m licensed in Utah, Idaho, and Texas. Buyers here often weigh a conventional loan against FHA, a USDA loan in eligible rural areas, or a state housing program. In Utah, Utah Housing Corporation offers down payment assistance paired with its own first mortgages; I cover that on my Utah Housing programs page. Idaho buyers have their own state options to compare. I’ll put the numbers next to each other so you can choose with clear eyes.
Most conventional loans require a minimum score around 620. Scores in the 700s and above typically get better pricing and cheaper PMI.
As little as 3% for qualified buyers, with 5% or more being common. Putting 20% down avoids PMI.
For most counties it’s $832,750 for a single-family home. Teton County, Idaho is $1,249,125, and a few Utah counties like Summit and Wasatch are also higher. I’ll confirm the limit for your specific county.
You can request cancellation when your balance reaches 80% of the home’s original value, and it ends automatically when your balance is scheduled to reach 78%, as long as you’re current on payments.
It depends on your credit and down payment. With strong credit, conventional is often cheaper and the PMI can be removed. With lower credit, FHA may come out ahead. I’ll compare both for you.
Yes. Conventional loans can be used for primary residences, second homes, and investment properties, though down payment and pricing requirements are higher for non-owner-occupied homes.
If you’re thinking about a conventional loan, let’s see what it looks like for you. Book a call with me and I’ll walk you through your options, costs, and next steps.
Caleb Adams, NMLS #2281316. First Class Home Mortgage, NMLS #1843. Terms, programs, and eligibility vary; not all applicants will qualify. This is not a commitment to lend.
Most conventional loans require a minimum credit score around 620, though a higher score typically unlocks better pricing. I look at your full picture, not just the number, so reach out and I can tell you where you stand today.
Conventional loans can go as low as 3% down for qualified first time buyers, with 5% and up being common for others. The right amount depends on your goals, so let us talk through what makes sense for you.
If you put down less than 20%, PMI is usually required, but it automatically drops off once you reach 20% equity. There are also strategies to avoid or reduce PMI that I can walk you through.
Conventional loans are not government backed and can offer more flexibility for borrowers with strong credit, while FHA loans have more lenient credit requirements but carry mortgage insurance for the life of the loan in most cases. I can help you compare both side by side for your situation.