Conventional Loans Georgia 2026 | Requirements & Rates

What is a Conventional Loan?

Conventional loans are mortgages not backed by a government agency (unlike FHA, VA, or USDA). They're originated by private lenders and often sold to Fannie Mae or Freddie Mac, which set the underwriting guidelines.

Conventional loans are the most common mortgage type, accounting for about 70% of home purchases. They offer the most flexibility in terms, down payment, and property types.

Key Features

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Flexible Property Types
Primary, second homes, investment

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3% Minimum Down
For first-time buyers

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PMI Removable
At 20% equity

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Faster Closing
Less paperwork than government loans

Conventional Loan Requirements

Credit Score

620 minimum for most lenders
740+ gets the best rates
Higher scores = lower PMI costs

Down Payment

3%: First-time buyers with good credit (Fannie Mae HomeReady, Freddie Mac Home Possible)
5%: Standard minimum for most buyers
10-15%: Better rates, lower PMI
20%: No PMI required

Debt-to-Income Ratio

Maximum 45% (can go to 50% with strong compensating factors)
Calculated as all monthly debt payments / gross monthly income

Loan Limits in Georgia (2026)

Conventional conforming loan limits for Georgia:

Property Type	Limit
1-unit (single family)	$766,550
2-unit	$981,500
3-unit	$1,186,350
4-unit	$1,474,400

Above these limits? You'll need a jumbo loan with stricter requirements.

Private Mortgage Insurance (PMI)

If you put less than 20% down, you'll pay PMI. Unlike FHA's MIP, conventional PMI:

Can be removed when you reach 20% equity
Automatically drops at 22% equity
Costs less with better credit scores
Typically 0.3% - 1.5% of loan amount annually

Example: On a $300,000 loan, PMI might cost $75-$375/month depending on your credit score and down payment.

Conventional vs. Government Loans

Feature	Conventional	FHA	VA
Min Down	3%	3.5%	0%
Min Credit	620	580	620
PMI/MIP	Removable at 20%	Life of loan*	None
Property Types	All types	Primary only	Primary only
Loan Limits	$766,550	$472,030	None

*FHA MIP can be removed after 11 years with 10%+ down

When Conventional Makes Sense

Good credit (700+): You'll get competitive rates without government fees
20% down available: Skip PMI entirely
Investment property: Government loans don't allow this
Second home: Beach house or mountain cabin
Higher loan amounts: Conforming limits above FHA

Conventional Loans