Traditional Lending
Conventional loans, often referred to as conforming loans, are mortgage loans made by banks and mortgage lenders. These mortgages fall under conventional loan guidelines are purchased by Fannie Mae and Freddie Mac.
Among the guidelines are maximum loan limits, down payment conditions, minimum credit score, credit report tradelines, allowed monthly debt to income ratios and other underwriting guidelines.
The 2026 conforming loan limit is $832,750 in the U.S. However, some higher cost counties in Colorado, have higher conforming limits such as the five counties within the Denver metro, Boulder, Aspen, Vail, Summit County, and others. Loan amounts that exceed the conforming limits are known as jumbo loans.
While conventional loan programs are not insured by the Federal Government like a VA or FHA loan, they do abide by the guidelines of Fannie Mae and Freddie Mac which are more strict compared to government-insured loans.
A buyer seeking a conventional mortgage is required to bring in a 5% down payment unless they qualify for the Conventional 97, which is just 3% down. HomeReady or HomePossible programs are very attractive alternatives to FHA financing for buyers with 700 and above credit scores, debt-to-income ratios below 43, and qualifying employment.
A conventional loan does not have an up-front mortgage insurance premium (MIP) like FHA & VA loans. The fee for MIP can range from 1 to 3.3% of the loan amount. Having said that, monthly private mortgage insurance is required on Conventional loans with less than 20% down payment.
Note: the 3 & 5-percent down payment programs only apply to borrowers intending to occupy it as a primary residence for at least the first 12 months.
You are able to purchase a second home or investment property using a conventional loan but with a higher down payment. With FHA and VA, it can only be a primary residence.
Well, this all depends on your credit scores, overall credit report, debt to income ratios, the amount you have for a down payment, employment history, rent or mortgage payment history, and when you need to close. If you're buying a home and want to close quickly in order to get your offer accepted, a bridge loan could be a faster option than the conventional route.
Popular conventional QM loans include: 95 LTV conforming product in Denver and loans for condos while non-QM loans include the DSCR cash flow loan for investors, no tax return mortgages for self-employed and a rare no debt ratio mortgage for primary home borrowers.
We serve borrowers throughout the state of Colorado which includes these cities:
Disclosure: The minimum loan amount is $150,000. Loan programs are subject to change per lender at any time until the loan is approved and the rate is locked. Borrowers must be approved by underwriting. Not all applicants will qualify.