The published rules
These are programme rules, not Plinth policy. Where a figure is reset each year — conforming limits, FHA county limits, the USDA fee, the VA fee table — the mechanism is described and the number is not, because a stale number on a lending page is worse than no number.
- Loan size
- At or below the conforming loan limit. The Federal Housing Finance Agency publishes a baseline limit each year and a higher ceiling for designated high-cost counties, so the number depends on the year and the county. Above it, the loan is a jumbo.
- Down payment
- As little as 3% on the standard low-down-payment products from Fannie Mae and Freddie Mac, 5% on most other conventional loans. Twenty per cent is what removes mortgage insurance from day one, not what is required.
- Mortgage insurance
- Private mortgage insurance is required above 80% loan-to-value. Under the Homeowners Protection Act, borrower-paid PMI on a primary residence must be cancelled on request at 80% of the original value, and terminated automatically at 78%, provided payments are current. This is why the settling band matters more than the rate sheet.
- Credit
- Lenders generally look for a score of 620 or better, and individual lenders apply their own overlays above the agency minimum. Pricing moves with score and loan-to-value together, not with score alone.
- Property
- Primary residences, second homes and investment properties are all possible, with different down payment and pricing rules for each.

What it will not do
- It has no special provision for a thin or non-traditional credit file. FHA is usually the more forgiving door there.
- It does not beat VA on structure for an eligible veteran: VA has no monthly mortgage insurance at all.
- Above the conforming limit it stops being available and the question becomes a jumbo question.
What to find out before you go further
- 01The conforming limit for the county you are buying in, this year.
- 02Whether your down payment puts you above or below 80% loan-to-value.
- 03Whether you qualify for one of the 3%-down products, which have income or first-time-buyer conditions.