A flexible purchase loan available in 15-year and 30-year fixed terms. Beeline shops many lenders and structures your conventional loan around your credit, your down payment, and your timeline.
Chris Hendrickson NMLS #145552 | Beeline Mortgage, LLC NMLS #1713379 | Licensed in WA & ID
3%
As low as 3% down for eligible buyers
620+ credit score required
620+
Min Credit Score
Stronger pricing at 740+
$832,750
Conforming Loan Limit
2026 standard limit
15 or 30
Loan Terms (Years)
Fixed rate options
The Basics
What Is a Conventional Loan?
A conventional mortgage is any home loan that isn't backed by a government agency like the FHA, VA, or USDA. Instead, conventional loans conform to the standards set by Fannie Mae and Freddie Mac, the government-sponsored enterprises (GSEs) that buy and securitize most mortgages in the U.S. Because of this, they're often called "conforming loans" when they fall within the established loan limits.
Conventional loans are the most widely used mortgage product in the country. They're available in 15-year and 30-year fixed-rate terms and can be used for primary residences, second homes, and investment properties, giving them flexibility that government-backed loans like FHA and VA don't have. The 2026 conforming loan limit for standard counties in Washington and Idaho is $832,750.
Unlike FHA loans, conventional loans don't require mortgage insurance when you put 20% or more down. If you put less than 20% down, private mortgage insurance (PMI) is required, but you can request cancellation at 80% LTV, and it ends automatically at 78% LTV based on the original value, something FHA MIP doesn't do for most borrowers. For buyers with strong credit, conventional loans can offer a strong long-term cost.
Ideal Borrower
Who Is Conventional Right For?
May Not Be the Right Fit If...
✅Buyers with 620+ credit score (stronger pricing at 740+)
✅Buyers with 20% down who want to avoid PMI entirely
✅Buyers purchasing a second home or investment property
✅Buyers who want a shorter 15-year term to build equity faster
✅Move-up buyers with equity from a prior home sale
✅Borrowers who plan to reach 20% equity and drop PMI
✗Credit score is below 620, FHA may be easier to qualify
✗Very limited down payment with lower credit, FHA has more flexible requirements
✗You're an eligible veteran, VA loan often offers stronger terms
✗Your purchase is in a USDA-eligible rural area, USDA may suit you better than conventional for eligible buyers
Qualification Requirements
Conventional Loan Requirements
Credit Score
620+ Minimum
Rate tiers improve significantly at 680, 720, and 740+. Strong credit is where conventional really shines.
Down Payment
As low as 3% for eligible buyers
20% down eliminates PMI entirely. Lower down payment options may be available for eligible buyers. Requirements vary by program and lender. Gift funds allowed with restrictions.
Debt-to-Income
Up to 45-50%
Standard guideline is 45%. DU approval can push to 50% in some scenarios. Less flexible than FHA on DTI.
PMI
Required under 20% down
Request cancellation at 80% LTV; ends automatically at 78% LTV, both based on original value. Unlike FHA MIP, which can last for the life of the loan with a smaller down payment.
Loan Limit
Up to $832,750
2026 conforming limit for standard counties. Above this is jumbo territory with different lender requirements.
Occupancy
Primary, Second Home, Investment
Flexible occupancy options across loan types. Rate and down payment requirements vary by occupancy type.
Why Beeline for Conventional
The Beeline Advantage for Conventional Loans
Beeline shops many lenders to find your fit, with UWM among the wholesale lenders we work with. Fannie and Freddie set the conventional guidelines, and we structure your loan to those guidelines around your credit tier, loan size, and occupancy. We guide your file from application to closing with the people you actually talk to.
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Rate Tier Optimization
Conventional pricing uses LLPA (Loan Level Price Adjustments) based on credit score and LTV. We structure your file to minimize your LLPA hit.
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FHA vs. Conventional Comparison
For buyers on the fence, we run a full comparison, monthly payment, PMI, MIP, long-term cost, so you can make an informed decision.
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15 vs. 30-Year Analysis
We model both terms side by side. The 15-year builds equity faster and carries a lower rate, we'll show you exactly what the payment difference means in your situation.
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Investment & Second Home Expertise
Investment properties price differently than primary residences. We structure second home and rental financing to fit your scenario.
Local Context
Conventional Loans in Washington & Idaho
Conventional financing is widely used in the Spokane/North Idaho market, including Spokane, Liberty Lake, Coeur d'Alene, Tri-Cities, and the surrounding area. With the 2026 conforming limit at $832,750, conventional covers most loan amounts in these markets.
For buyers with good credit and a reasonable down payment, conventional can offer a strong long-term cost. Move-up buyers selling an existing home usually bring enough equity for 20%+ down, eliminating PMI and making conventional the clear choice. First-time buyers with 740+ credit and a modest down payment can also do very well with conventional, often a stronger fit than FHA once you factor in FHA MIP, which can last for the life of the loan with a smaller down payment.
Second homes around Lake Coeur d'Alene, Sandpoint, or rural Idaho/Eastern Washington properties often use conventional financing as well. The flexibility of conventional to cover non-primary occupancies makes it the go-to for move-up buyers keeping a prior home as a rental or purchasing a lake cabin.
Common Questions
Conventional Loan FAQ
A 15-year loan typically carries a lower interest rate than a 30-year loan and builds equity much faster, but the monthly payment is significantly higher. A 30-year loan has a lower monthly payment and more cash flow flexibility, but you pay more interest over time. Beeline models both scenarios with your actual numbers so you can see the real tradeoff before deciding.
You can request cancellation at 80% of the original value, and it ends automatically at 78%. Some servicers also allow removal based on a new appraisal, subject to their requirements. This is a major advantage over FHA MIP, which can last for the life of the loan with a smaller down payment.
Yes, conventional is often the go-to for investment property financing when you want to use personal income to qualify (as opposed to DSCR). Investment properties typically require a larger down payment than a primary residence, plus higher credit score minimums and pricing adjustments. Requirements vary by lender. Chris and the team structure your file to minimize these adjustments.
Generally yes for buyers with 700+ credit scores, but it depends on the down payment. With a smaller down payment and a 700 score, conventional PMI might cost less than FHA MIP, and PMI drops off while MIP doesn't. At lower credit scores (620-680), FHA can sometimes offer a lower rate that offsets the MIP cost. We run both scenarios side by side so you're not guessing. Get your actual rate from a loan officer →
For 2026, the standard conforming limit is $832,750 in Spokane County, Kootenai County (CdA/Post Falls), Benton and Franklin Counties (Tri-Cities), and most other regional counties. Purchases above this threshold require jumbo financing with different lender criteria and pricing.
Yes. Conventional loans can be used for second homes. Down payment requirements vary by program and lender, and we confirm yours when we review your file. Second homes must be located a reasonable distance from your primary residence and can't be rented out on a full-time basis (which is where DSCR loans come in for true investment use). The rate is slightly higher than primary residence pricing but lower than a pure investment property.