Conventional mortgage loans in Clovis & eastern New MexicoFlexible options for your next move.

A conventional loan is a mortgage that isn't insured or guaranteed by a government agency like FHA or VA. Many follow Fannie Mae or Freddie Mac guidelines, which is why they're often called conforming loans when they're at or below the conforming loan limit.

No. Many conventional programs allow smaller down payments. When the down payment is under 20%, you'll typically pay private mortgage insurance (PMI), which the calculator above estimates from the rate you enter.

Under the federal Homeowners Protection Act, borrower-paid PMI on a conventional loan can generally be requested to be removed when your balance reaches 80% of the home's original value, and it is automatically terminated at 78% if you are current on payments. Specific conditions apply, so ask me how it would work for you.

HomeReady® (Fannie Mae) and Home Possible® (Freddie Mac) are conventional programs that Neighborhood Loans lists among its mortgage programs. Neighborhood Loans describes them as offering low down payment options, flexible income qualification or sources, and reduced mortgage insurance coverage or options. Eligibility rules, such as income limits, apply.

For 2026, the baseline conforming loan limit for a one-unit home in most of the country is $832,750, according to the Federal Housing Finance Agency. Higher limits apply in some high-cost areas. See my news post on the topic.

It depends on your credit, down payment, eligibility and how long you plan to stay. I'll compare them side by side so you can see the real differences in payment and cost.