Conventional loans are the most widely used mortgage product in Massachusetts — and for good reason. They offer flexible down payment options starting at 3%, competitive interest rates for strong-credit borrowers, and the ability to eliminate mortgage insurance once you reach 20% equity. Whether you're purchasing your first home or your fifth, a conventional loan may be your most cost-effective long-term option.
A conventional loan is a mortgage not backed by a government agency. Instead, it conforms to the lending guidelines set by Fannie Mae and Freddie Mac — the two government-sponsored enterprises that purchase and guarantee most U.S. mortgages. Because conventional loans aren't government-insured, lenders typically require stronger credit profiles, but offer more flexibility on property types and loan structures.
In Massachusetts, conventional loans are subject to conforming loan limits. For 2024, the conforming limit is $766,550 for a single-family home in most of the state — covering the vast majority of purchases in Worcester County and beyond. Loan amounts above this threshold are considered jumbo loans.
First-time homebuyers may qualify for as little as 3% down through programs like Fannie Mae's HomeReady or Freddie Mac's Home Possible, which also allow income from non-borrower household members and boarder income to qualify.
For borrowers with solid credit, a conventional loan often delivers the lowest long-term cost of any mortgage product.
Unlike FHA MIP which may last the life of the loan, conventional PMI can be canceled automatically when your loan balance reaches 78% of the original purchase price — or requested earlier once you hit 20% equity.
Conventional loans can be used for primary residences, second homes, vacation homes, and investment properties — giving you far more flexibility than FHA or VA loans, which are restricted to primary residences.
With a credit score of 700+ and 20% down, a conventional loan typically has no mortgage insurance and a competitive rate — making it the most cost-effective option for well-qualified buyers.
The 2024 conforming loan limit of $766,550 covers the majority of home purchases in Massachusetts. And if your loan exceeds this amount, a jumbo loan may still be within reach.
Choose from 10, 15, 20, or 30-year fixed terms — or consider an adjustable-rate mortgage (ARM) if you plan to move or refinance within 5–7 years. More options means a more tailored payment.
Unlike FHA loans (which add 1.75% upfront MIP) or VA loans (which have a funding fee), conventional loans have no upfront insurance premium — keeping your closing costs lower.
Here's what lenders typically look for when evaluating a conventional loan application.
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