Agency Mortgages — Fannie Mae & Freddie Mac
Conventional LoansConforming Mortgages to Fannie Mae & Freddie Mac Standards
Total Quality Lending offers Conventional / Conforming mortgages alongside our DSCR and non-QM programs — the lowest agency-priced rates for W-2 borrowers and self-employed borrowers who can document with tax returns. Credit scores from 620, down payments from 3%, and loan amounts up to the FHFA conforming limit ($767K baseline / $1.15M in high-cost counties in 2026).
- Min FICO
- 620
- Min down payment
- 3%
- Max loan (baseline)
- $767K
- Max loan (high-cost)
- $1.15M
Why borrowers choose conventional with TQL
Conventional loans deliver the lowest agency-priced rates for borrowers who can document income with tax returns and paystubs. Same loan, same Fannie/Freddie guidelines — paired with TQL’s investor-grade closing speed and a team that also handles your DSCR or non-QM loan if the file pivots.
- Lowest agency-priced rates available — sold to Fannie Mae and Freddie Mac
- Down payments as low as 3% on primary residence (first-time homebuyers)
- Credit scores from 620 — best terms reserved for 740+
- Up to 95% LTV on primary residence with mortgage insurance
- Primary, second home, and investment occupancies eligible
- Conforming limits to $766,550 baseline and $1,149,825 in high-cost counties (2026)
- Mortgage insurance removable at 80% LTV (auto at 78% per HPA)
Program at a glance
- Underwriting standard
- Fannie Mae & Freddie Mac
- Minimum FICO
- 620
- Max DTI (with AUS)
- 50%
- Baseline conforming limit (SFH)
- $767K
- High-cost-area ceiling (SFH)
- $1.15M
- Occupancy
- Primary residence, Second home, Investment property
- Max financed properties
- 10
- Mortgage insurance threshold
- 80% LTV
Available terms
- 15-, 20-, and 30-year fixed
- 5/6, 7/6 & 10/6 ARMs (30-year term)
- High-balance loans up to the high-cost-area ceiling in eligible counties
Max LTV by credit score
| FICO | Primary | 2nd Home | Investment |
|---|---|---|---|
| 740+ | 95% (97% FTHB) | 90% | 85% (1-unit) / 75% (2–4 unit) |
| 720 | 95% | 90% | 85% (1-unit) / 75% (2–4 unit) |
| 700 | 95% | 85% | 80% (1-unit) / 75% (2–4 unit) |
| 680 | 95% | 80% | 75% (1-unit) / 70% (2–4 unit) |
| 660 | 90% | 75% | Not eligible |
| 620 | 85% | NA | NA |
Minimum down payment by occupancy
- Primary (first-time homebuyer): 3% (HomeReady / Home Possible)
- Primary (repeat buyer): 5%
- Second home: 10%
- Investment property: 15% (single-unit), 25% (2–4 unit)
- Mortgage insurance required when LTV exceeds 80%. Removable at 80% LTV; auto-terminates at 78% per HPA.
Eligible properties
- Single-family (attached & detached)
- 2–4 unit properties
- Condominiums (warrantable)
- PUDs (planned-unit developments)
- Manufactured homes (Fannie MH Advantage / Freddie CHOICEHome on eligible programs)
Required documentation
- Most recent 2 years W-2s and/or federal tax returns
- Most recent 30 days of paystubs (wage earners)
- 2 years business tax returns + YTD P&L (self-employed)
- 2 months of bank statements for assets / down payment
- IRS Form 4506-C (income verification authorization)
Self-employed and can’t document?
If full tax-return documentation doesn’t reflect your true income, TQL’s Bank Statement Loans, P&L Only Mortgage, and 1099 Mortgage paths qualify without tax returns under our Prime Time non-QM program.
Conventional loan FAQ
Does Total Quality Lending offer conventional loans?
Yes. Total Quality Lending originates Conventional / Conforming mortgages underwritten to Fannie Mae (Selling Guide) and Freddie Mac (Single-Family Seller/Servicer Guide) agency standards, alongside our DSCR and non-QM programs. Conventional loans are typically the lowest-rate option for W-2 borrowers who can fully document income with tax returns and paystubs.
What credit score do I need for a conventional loan?
Conventional loans start at a 620 minimum credit score, but the best LLPA pricing and the highest loan-to-value ratios are reserved for borrowers with 740+. Investment-property transactions typically require 680 or higher.
What is the 2026 conforming loan limit?
In 2026 the FHFA baseline conforming loan limit for a single-family home is $767K. In designated high-cost counties — including parts of California, New York, Washington D.C., Alaska, Hawaii, Guam, and the U.S. Virgin Islands — the ceiling rises to $1.15M. Multi-unit baselines: 2-unit $982K, 3-unit $1.19M, 4-unit $1.47M.
What's the minimum down payment on a conventional loan?
3% (HomeReady / Home Possible) for first-time homebuyers using Fannie Mae HomeReady or Freddie Mac Home Possible, 5% for repeat primary-residence buyers, 10% for a second home, and 15% (single-unit), 25% (2–4 unit) for investment property. Mortgage insurance is required whenever LTV exceeds 80%.
Can I use a conventional loan for an investment property?
Yes — Fannie Mae and Freddie Mac both allow up to 10 financed properties per borrower. Investment-property conventional loans require a higher down payment (typically 15% on a single-unit, 25% on a 2–4-unit), stricter reserve requirements, and a minimum 680 FICO. Investors who hit the 10-property cap often transition to TQL's DSCR program, which has no property-count limit and qualifies on rental cash flow.
Conventional vs. DSCR — which one should I choose?
Conventional is usually cheaper on rate and ideal for primary-residence and second-home borrowers with clean W-2 income. DSCR wins when (a) you can't document personal income, (b) you've hit Fannie's 10-property cap, (c) you want to vest title in an LLC, or (d) you need to skip tax-return underwriting. See our side-by-side comparison at /dscr-vs-conventional for the full breakdown.
What documentation do I need for a conventional loan?
Standard agency documentation: Most recent 2 years W-2s and/or federal tax returns; Most recent 30 days of paystubs (wage earners); 2 years business tax returns + YTD P&L (self-employed); 2 months of bank statements for assets / down payment; and an IRS Form 4506-C income-verification authorization. Self-employed borrowers add 2 years of business tax returns and a YTD profit-and-loss statement. Self-employed borrowers who can't or prefer not to provide tax returns can instead use TQL's bank-statement or P&L-only paths on the Prime Time non-QM program.
Can mortgage insurance be removed from a conventional loan?
Yes. Borrower-paid mortgage insurance (BPMI) can be requested for removal once the loan reaches 80% LTV based on the original or current appraised value, and it auto-terminates at 78% LTV per the Homeowners Protection Act. This is a key advantage of conventional over FHA, where mortgage insurance generally remains for the life of the loan.
Related loan programs
Conventional is one of five loan programs at Total Quality Lending. When tax-return underwriting doesn’t fit your scenario, the DSCR and non-QM hubs below cover alternatives.
DSCR Loans
Investor loans that qualify on the property's rental cash flow. Up to 80% LTV, FICO from 640, loans to $3.5M.
Foreign National DSCR
Investment property loans for non-U.S. citizens. Up to 75% LTV, 680+ credit or No Credit Score, loans to $1.5M.
DSCR 5–8 Units
Larger residential and mixed-use multifamily. Up to 75% LTV, loans $400K–$2M for experienced investors.
All Non-QM Programs (Prime Time)
Standard Doc and 6 alt-doc paths — bank statements, P&L, 1099, written VOE, asset utilization. Up to 90% LTV, loans to $4M.
Ready to compare conventional vs. non-QM?
We’ll quote both options on your scenario so you can choose the right product instead of guessing.