Conventional & Jumbo Loans
Flexible financing for every budget — from starter homes to luxury properties.
Flexible Financing for Every Budget — From Starter Homes to Luxury Properties
Whether you're buying your first home or financing a high-value property, Louisa Mortgage offers Conventional and Jumbo loan options built around your goals. With competitive rates, flexible terms, and a range of down payment options, these loans remain some of the most popular ways to finance a home purchase.
Check Your Rate →What Is a Conventional Loan?
A Conventional loan is a mortgage not backed by a government agency like the FHA, VA, or USDA. Instead, it follows guidelines set by Fannie Mae and Freddie Mac, making it a reliable, widely available option for buyers with solid credit and stable income.
What Is a Jumbo Loan?
A Jumbo loan is a mortgage that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA). Designed for higher-value properties with stricter credit and income requirements to finance homes conventional loans can't cover.
Why Choose a Conventional Loan?
As Low as 3% Down
Qualified buyers, including first-time homebuyers, may put down as little as 3%.
No Upfront Mortgage Insurance Fee
Unlike FHA loans, conventional loans don't charge an upfront mortgage insurance premium.
PMI Can Be Removed
Once you reach 20% equity, private mortgage insurance can typically be cancelled.
Flexible Property Types
Use a conventional loan for primary residences, second homes, and investment properties.
Variety of Terms
Choose from 15, 20, or 30-year fixed terms, or adjustable-rate options.
Why Choose a Jumbo Loan?
Higher Loan Amounts
Finance homes above conforming loan limits, including luxury and high-cost-area properties.
Competitive Rates
Jumbo rates are often comparable to, or only slightly higher than, conventional rates.
Flexible Terms
Fixed and adjustable-rate options available to fit your financial strategy.
Portfolio & Investment Flexibility
Useful for financing primary homes, vacation properties, or investment purchases that exceed standard limits.
Conventional vs. Jumbo: Which Is Right for You?
| Feature | Conventional Loan | Jumbo Loan |
|---|---|---|
| Loan Amount | Up to conforming loan limits | Exceeds conforming loan limits |
| Down Payment | As low as 3% | Typically 10–20% |
| Mortgage Insurance | Required below 20% down (removable) | Varies by lender and down payment |
| Credit Requirements | Moderate — flexible for qualified buyers | Stricter — strong credit and reserves expected |
| Best For | First-time buyers, standard home purchases | High-value homes, luxury or high-cost-area properties |
Am I Eligible?
Conventional Loan Eligibility
- Credit score typically 620 or higher
- Stable income and manageable debt-to-income ratio
- Down payment of at least 3% (5–20% for certain property types)
Jumbo Loan Eligibility
- Strong credit score, often 700 or higher
- Larger down payment, typically 10–20%
- Verified cash reserves and lower debt-to-income ratio
- Full income and asset documentation
How to Apply
- Talk to a Loan Officer: We'll review your goals and help determine whether a Conventional or Jumbo loan fits best.
- Get Pre-Approved: Know your budget before you start shopping for homes.
- Find Your Home: Shop with confidence, backed by a clear pre-approval.
- Submit Your Application: We'll guide you through documentation and underwriting.
- Appraisal & Underwriting: Your lender verifies the property value and finalizes loan terms.
- Close on Your Home: Sign your documents and get the keys to your new home.
Conventional & Jumbo Loan FAQs
A Conventional loan falls within standard conforming loan limits, while a Jumbo loan exceeds those limits — typically used to finance higher-value homes.
Yes. Many buyers qualify with as little as 3% down, though private mortgage insurance (PMI) will apply until you reach 20% equity.
Usually, yes — most lenders require 10–20% down for Jumbo loans, though this can vary based on your credit profile and loan amount.
Jumbo loans generally require stronger credit, lower debt-to-income ratios, and documented cash reserves compared to Conventional loans, since lenders take on more risk with larger loan amounts.
Yes, both loan types can be used for primary residences, second homes, and investment properties, though terms and down payment requirements may vary.
Ready to Explore Your Options?
Whether your next home falls within standard loan limits or calls for Jumbo financing, Louisa Mortgage will help you find the right fit and the right rate.
This content is for informational purposes only and does not constitute a loan offer or guarantee of approval. Rates, terms, and eligibility are subject to change and lender review.