Conventional Loans

Yes. Certain conventional mortgage programs allow eligible borrowers to purchase a primary residence with as little as 3% down. Fannie Mae HomeReady and Freddie Mac Home Possible are examples of conventional options that may support low-down-payment financing, subject to eligibility and income requirements.

The conforming loan limit for a one-unit property in Pierce County was $1,037,300 in 2025 and increased to $1,063,750 in 2026. These limits are higher than the national baseline because Pierce County belongs to a designated high-cost lending area. The limits apply to conforming loan amounts, not directly to home purchase prices.

No. King County and Pierce County share the same conforming loan limits because both are included in the Seattle–Tacoma–Bellevue high-cost area. For one-unit properties, the limit was $1,037,300 in 2025 and increased to $1,063,750 in 2026. Actual home prices may differ substantially between the two counties.

For many conventional mortgages, borrowers may request cancellation of private mortgage insurance when the principal balance reaches 80% of the home's original value, subject to statutory and servicing requirements. PMI generally terminates automatically when the scheduled balance reaches 78% of the original value, provided the borrower is current. Other cancellation options may exist depending on loan ownership and servicing guidelines.

Borrowers with stronger credit may benefit from comparing conventional financing with FHA because conventional mortgage insurance and upfront costs can differ. Conventional loans may offer greater flexibility for borrowers seeking to remove PMI as equity increases. A side-by-side comparison should include the down payment, APR, closing costs, and expected time in the home.

Yes. Student loan debt does not automatically disqualify a borrower from conventional financing. The lender evaluates the monthly student loan obligation under applicable underwriting rules, along with income, other debts, credit history, and available assets.

Many conventional mortgage programs permit eligible gift funds from acceptable donors toward the down payment or closing costs. Documentation generally includes a gift letter and evidence showing the source and transfer of funds. Program restrictions may vary based on occupancy, property type, and loan-to-value ratio.

HomeReady and Home Possible are conventional mortgage programs designed to make homeownership more accessible to eligible low- and moderate-income borrowers. Both may offer 3% down payment options and reduced mortgage insurance costs compared with certain standard conventional scenarios. Eligibility depends on income limits, credit, property type, and other underwriting requirements.