The Standard for Strong Buyers in the DMV
Flexible terms, competitive rates, and as little as 3% down. Conventional loans are the most popular mortgage option for Virginia, DC, and Maryland homebuyers — and for good reason.
A conventional loan is a mortgage that isn't backed by a government agency like FHA, VA, or USDA. Most conventional loans are "conforming," meaning they meet Fannie Mae and Freddie Mac guidelines. In the DC metro area, you can borrow up to $1,249,125 with a conforming conventional loan in 2026 — with as little as 3% down and a minimum credit score of 620. If you have solid credit and stable income, a conventional loan typically offers the lowest rates and most flexibility of any mortgage option.
- Minimum 3% down for first-time buyers, 5% standard — no PMI once you reach 20% equity
- 620+ credit score required; scores above 740 unlock the most competitive rates
- 2026 conforming loan limit is $1,249,125 across Northern Virginia, DC, and most of the DMV metro area
- Fixed and adjustable-rate options available in 10, 15, 20, and 30-year terms
- Use for primary residences, second homes, or investment properties — more flexibility than government-backed loans
- PMI can be removed automatically once you reach 78% loan-to-value — unlike FHA mortgage insurance
- Combine with Virginia, DC, or Maryland down payment assistance programs to reduce cash needed at closing
What Is a Conventional Loan?
A conventional loan is any mortgage that isn't insured or guaranteed by a federal government agency. Unlike FHA loans (backed by the Federal Housing Administration) or VA loans (guaranteed by the Department of Veterans Affairs), conventional loans are originated and funded by private lenders like banks, credit unions, and mortgage companies.
Most conventional loans in the United States are also "conforming" loans — meaning they meet the underwriting guidelines set by Fannie Mae and Freddie Mac, two government-sponsored enterprises (GSEs) that purchase mortgages from lenders. Conforming loans must also fall within the annual loan limits set by the Federal Housing Finance Agency (FHFA).
Conventional loans are the most popular mortgage type in America, and for good reason: they typically offer the lowest interest rates for borrowers with strong credit, the most flexible terms (10, 15, 20, 25, and 30-year options), and the ability to remove private mortgage insurance (PMI) once you reach 20% equity — something FHA loans don't allow without refinancing.
In the Virginia, DC, Maryland, and West Virginia area, conventional loans are especially popular due to the region's higher home values and the elevated conforming loan limit of $1,249,125 for 2026 — well above the national baseline of $832,750.
Conventional Loan Requirements
Here's what you'll typically need to qualify for a conforming conventional loan in 2026. Requirements may vary by lender — ALCOVA Mortgage works to find the best fit for your financial profile.
Not sure if you qualify? Let's find out — it takes about 15 minutes.
Get a personalized pre-approval with our team. No obligation, no impact on your credit score for an initial consultation.
Choose the Right Term for Your Goals
Conventional loans come in multiple term lengths and rate structures. The right choice depends on how long you plan to stay, your monthly budget, and your long-term financial goals.
- Lowest monthly payment
- Predictable budgeting
- Maximum purchasing power
- Lower interest rate
- Save tens of thousands in interest
- Own your home outright sooner
- Balance of payment & savings
- Typically lower rate than 30-year
- Less total interest paid
- Lower initial rate than fixed
- Rate caps limit adjustments
- Good for short-term ownership
Side-by-Side Comparison
| Feature | 30-Year Fixed | 15-Year Fixed | 20-Year Fixed | 5/6 ARM |
|---|---|---|---|---|
| Rate Type | Fixed for life | Fixed for life | Fixed for life | Fixed 5 yrs, then adjustable |
| Monthly Payment* | ~$5,360 | ~$7,280 | ~$6,130 | ~$5,090 (initial) |
| Total Interest Paid* | ~$679,000 | ~$311,000 | ~$472,000 | Varies |
| Rate (Typical Range) | Base rate | 0.25–0.75% lower | 0.125–0.5% lower | 0.5–1.0% lower initially |
| Min. Down Payment | 3% (first-time), 5% standard | 3% (first-time), 5% standard | 3% (first-time), 5% standard | 5% typical |
| Payment Predictability | High — never changes | High — never changes | High — never changes | Moderate — adjusts after year 5 |
| Equity Build Speed | Slower | Fastest | Fast | Slower initially |
*Estimated for a $800,000 loan amount. Monthly payments shown are principal & interest only. Rates and terms subject to qualification and market conditions. Contact the Ken Byrne Team for a personalized quote.
Down Payment & PMI Explained
One of the biggest advantages of conventional loans is the ability to remove PMI. Here's what different down payment levels look like on a $700,000 home in the DMV — a common price point in Northern Virginia.
- Cash Needed
- $21,000
- Loan Amount
- $679,000
- LTV Ratio
- 97%
- Est. PMI/mo
- $280–$480
- Cash Needed
- $35,000
- Loan Amount
- $665,000
- LTV Ratio
- 95%
- Est. PMI/mo
- $220–$400
- Cash Needed
- $70,000
- Loan Amount
- $630,000
- LTV Ratio
- 90%
- Est. PMI/mo
- $120–$250
- Cash Needed
- $140,000
- Loan Amount
- $560,000
- LTV Ratio
- 80%
- Est. PMI/mo
- $0
What Is PMI?
Private Mortgage Insurance (PMI) protects the lender — not you — if you default on the loan. It's required when your down payment is less than 20% on a conventional loan.
PMI typically costs between 0.3% and 1.5% of the original loan amount per year, depending on your credit score, down payment percentage, and loan type. The higher your credit score and down payment, the lower your PMI rate.
How to Remove PMI
This is a major advantage over FHA loans. With a conventional loan, PMI is cancellable. You can request removal when you reach 20% equity (80% LTV), and it's automatically removed at 78% LTV.
You can also reach 20% equity faster through home value appreciation. In the DMV's strong market, many homeowners reach this threshold within a few years. Request a new appraisal and ask your servicer to drop PMI.
Estimated Annual PMI Cost by Credit Score
PMI rates are estimates based on typical lender pricing for 2026. Actual rates depend on LTV, credit score, loan type, and insurer. Contact the Ken Byrne Team for a personalized PMI quote.
Reduce Your Cash Needed with Down Payment Assistance
Virginia, DC, and Maryland each offer programs that can significantly reduce — or even eliminate — the cash you need at closing. Many of these programs work with conventional loans and can be combined with competitive rates from ALCOVA Mortgage.
2026 Conventional Loan Limits by County
The DC metro area qualifies as a high-cost market, which means you can borrow significantly more with conforming conventional financing than in most parts of the country. Here's the county-by-county breakdown for our service areas.
| County / Area | 2026 Conforming Limit | Approx. Property Tax Rate | Approx. Median Home Price | Explore Area |
|---|---|---|---|---|
| Fairfax County VA | $1,249,125 | 1.11% | ~$700,000 | View Homes → |
| Loudoun County VA | $1,249,125 | 0.87% | ~$700,000 | View Homes → |
| Arlington County VA | $1,249,125 | 1.013% | ~$750,000 | View Homes → |
| Prince William County VA | $1,249,125 | 1.037% | ~$550,000 | View Homes → |
| Alexandria City VA | $1,249,125 | 1.09% | ~$650,000 | View Homes → |
| Stafford County VA | $1,249,125 | 1.01% | ~$475,000 | View Homes → |
| Washington, D.C. DC | $1,249,125 | 0.85% | ~$650,000 | View Homes → |
| Montgomery County MD | $1,249,125 | 0.93% | ~$580,000 | View Homes → |
| Prince George's County MD | $1,249,125 | 0.96% | ~$430,000 | View Homes → |
| Frederick County MD | $832,750 | 1.06% | ~$450,000 | View Homes → |
| Howard County MD | $1,249,125 | 1.01% | ~$550,000 | View Homes → |
| Jefferson County WV | $1,249,125 | 0.58% | ~$350,000 | View Homes → |
| Berkeley County WV | $832,750 | 0.59% | ~$310,000 | View Homes → |
Conforming loan limits set by the Federal Housing Finance Agency (FHFA) and effective January 1, 2026. Median home prices and property tax rates are approximate and subject to change. Verify your county's exact limit at fhfa.gov.
Why the High-Cost Limit Matters
In most of the country, a $900,000 home would require jumbo financing — which means higher rates, larger down payments, and stricter qualification. In the DMV, the $1,249,125 conforming limit means you can finance up to that amount with conventional rates and as little as 3-5% down. That's a significant advantage for buyers in Northern Virginia, DC, and the Maryland suburbs.
Selling While You Buy?
If you're upgrading to a larger home in the DMV, The Jamil Brothers Realty Group offers full-service listing at just 1.5% commission — saving you thousands on your current home sale while our team handles your new mortgage. Use the seller net sheet calculator to see your estimated proceeds.
Conventional vs. FHA vs. VA
Not sure which loan type is right for you? Here's how conventional loans compare to the two most common government-backed alternatives. Our team will help you choose the option that saves you the most.
| Feature | Conventional | FHA | VA |
|---|---|---|---|
| Min. Down Payment | 3% (first-time) / 5% | 3.5% | 0% |
| Credit Score Minimum | 620 | 580 (3.5% down) | No VA minimum (lenders may set 620) |
| Mortgage Insurance | PMI (removable at 80% LTV) | MIP (1.75% upfront + annual, often for life) | No mortgage insurance (VA Funding Fee instead) |
| Insurance Removable? | ✓ Yes — at 80% LTV | ✗ Not without refinancing | N/A — no monthly MI |
| Loan Limit (DMV) | $1,249,125 | $1,249,125 (FHA high-cost) | No limit (with full entitlement) |
| Property Types | Primary, second home, investment | Primary residence only | Primary residence only |
| Max DTI | Up to 50% | Up to 57% | Up to 60% (residual income dependent) |
| Eligibility | Anyone who qualifies | Anyone who qualifies | Veterans, active duty, eligible spouses |
| Seller Concessions | 3% (at <10% down) to 9% | Up to 6% | Up to 4% |
| Interest Rates | Competitive (best with 740+ credit) | Competitive (credit less impactful) | Typically the lowest available |
Choose Conventional If…
You have a 700+ credit score, at least 5% down, and want the ability to buy a second home or investment property. You value being able to remove PMI. Conventional loans offer the lowest total cost for strong borrowers.
Choose FHA If…
Your credit score is between 580-660 or you've had recent credit events. FHA is more forgiving on credit history and allows higher DTI ratios. The tradeoff is permanent mortgage insurance unless you refinance to conventional later.
Choose VA If…
If you're a veteran, active-duty service member, or eligible surviving spouse, VA loans offer 0% down, no PMI, and the lowest rates. With the Pentagon, Fort Belvoir, and Quantico nearby, VA loans are essential in our market.
Not sure which loan is right for you?
Ken Byrne (NMLS #187129) and the Ken Byrne Team have helped over 1,500 families find the right mortgage. We'll compare your options side-by-side at no cost.
Call (571) 242-0301How to Get a Conventional Loan with the Ken Byrne Team
From first conversation to closing day, here's what the process looks like. Most conventional loans close in 30-45 days.
Free Consultation
Call or apply online. We'll review your financial picture, discuss your goals, and determine which loan program saves you the most. No obligation, no pressure.
Pre-Approval
We pull credit, verify income and assets, and issue your pre-approval letter — showing sellers you're a qualified, serious buyer in a competitive DMV market.
House Hunting
Shop with confidence knowing your budget and monthly payment. Need a real estate agent? Our partners at The Jamil Brothers know the DMV market inside and out.
Loan Application
Once your offer is accepted, we lock your rate and formally submit your file to underwriting. We order the appraisal and title work immediately.
Processing & Underwriting
Our team manages appraisal, title, and underwriting conditions. We keep you updated at every step and resolve any issues proactively so there are no surprises.
Closing Day
Review your final numbers (no surprises — we've been transparent from day one), sign the documents, and get your keys. Welcome home.