Conventional conforming
The Fannie Mae and Freddie Mac loan most Albuquerque buyers end up with. It is the cheapest long-term option for anyone with a mid-FICO around 700 and a clean two-year history, mainly because the mortgage insurance comes off.
- Minimum down payment
- 3% first-time buyer, 5% otherwise
- Typical minimum mid-FICO
- 620, priced meaningfully better at 700+
- Maximum back-end DTI
- Up to 50% with strong automated findings
What this program actually is
A conforming loan is any loan that fits inside the agency rulebooks and the Federal Housing Finance Agency loan limit for the county. For Bernalillo, Sandoval and Valencia counties that is the standard one-unit limit, so almost every single-family purchase in the metro fits.
The part buyers underestimate is private mortgage insurance. Unlike FHA, conventional PMI is risk-based: two borrowers at the same price with the same down payment can be quoted very different monthly PMI because one has a 742 mid score and the other a 698. It also terminates. Once the loan reaches 78% of the original value it drops automatically, and you can request removal at 80% with a broker price opinion or appraisal.
Because PMI is priced by the lender's insurer relationships rather than by the agencies, this is one of the programs where shopping the panel matters most. We routinely see the same file quoted with monthly PMI that differs by $40 to $70 a month between two lenders at an identical note rate (sample figures).
- Minimum down payment
- 3% first-time buyer, 5% otherwise
- Typical minimum mid-FICO
- 620, priced meaningfully better at 700+
- Maximum back-end DTI
- Up to 50% with strong automated findings
- Mortgage insurance
- Cancels at 80% LTV on request
- Seller concessions
- 3% at under 10% down, 6% at 10% or more
What you get from us on this program
- Automated underwriting run through both Desktop Underwriter and Loan Product Advisor, because the findings often differ
- A monthly PMI comparison across at least three mortgage insurers, plus single-premium and lender-paid alternatives
- A written cost-to-close worksheet before you choose a lender
- Rate-lock strategy, including float-down eligibility where the lender offers it
- Appraisal waiver check before you pay for an appraisal
How the file runs
- 01
Income and asset review
We read your paystubs, W-2s and two months of statements before we quote anything, so the pre-approval survives underwriting.
- 02
Automated findings
We run the file through both agency engines and tell you which one gave the better result and why.
- 03
Panel pricing
The same scenario goes to three to five wholesale lenders on the same morning so the comparison is honest.
- 04
Lock and disclose
You get a Loan Estimate within three business days, and we walk through it line by line.
- 05
Underwriting to clear-to-close
We chase conditions daily and give you a written status every Tuesday and Friday.
What moves your pricing on this program
These are the inputs an underwriter and a rate sheet actually react to. Nothing on this page is a quote.
| Factor | Why it matters |
|---|---|
| Mid-FICO | Drives both the rate adjustment and the PMI factor |
| Loan-to-value | Pricing breaks at 80%, 85%, 90% and 95% |
| Occupancy | Second homes and investment property carry their own adjustments |
| Property type | Condos and 2 to 4 units price differently from detached homes |
| Reserves | Two months of reserves can improve findings on a thin file |
All rates, APRs, payments, fees and timelines referenced on this site are sample figures for illustration only. They are not an offer of credit and not a commitment to lend. Equal Housing Opportunity.
Conventional conforming questions
Not covered here? Call (505) 555-0135 or send us a note. Se habla español.
Yes, under the agency first-time buyer products, as long as at least one borrower has not owned a principal residence in the past three years and income fits the program rules.
You can request cancellation at 80% loan-to-value against the original value, and it terminates automatically at 78%. A later appraisal showing appreciation can also work with most servicers after two years.
No. You need a two-year history of employment, which can include school or military service. Changing employers inside the same field is normal and usually fine.