Conventional loans in Colorado
Flexible financing for a primary home, second home or rental
The most common mortgage for borrowers with solid credit. As little as 3% down for qualified buyers, mortgage insurance you can remove, and terms from 10 to 30 years.
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Why buyers choose conventional
Fewer restrictions than government-backed loans, with costs that reward strong credit.
Removable PMI
Pricing that rewards strong credit
Any occupancy
As little as 3% down
Conventional requirements
All loans are subject to credit approval.
- Most lenders look for a 620+ credit score; higher scores generally get better pricing
- 3% down for qualified buyers, 5% typical; 10% for second homes, 15–25% for rentals
- Debt-to-income typically 45% or below
- Stable, verifiable income — usually a two-year history
- An appraisal that meets Fannie Mae or Freddie Mac standards
- Cash reserves may be required, especially for investment properties
Loan terms
- 30-year fixed
- A lower monthly payment than shorter terms, with the same rate for the life of the loan.
- 20-year fixed
- A middle ground between payment size and faster payoff.
- 15-year fixed
- A higher payment, but you pay the loan off faster and pay less total interest.
- 10-year fixed
- The fastest payoff for borrowers who can carry a higher payment.
- Adjustable rate (ARM)
- A rate fixed for 5, 7 or 10 years, then adjusting every 6 months within caps (5/6, 7/6, 10/6).
Conventional loan questions
A conventional loan is a mortgage that isn't backed by a government agency (unlike FHA, VA or USDA loans). Most follow guidelines set by Fannie Mae and Freddie Mac. They offer terms from 10 to 30 years and can be used for primary residences, second homes and investment properties.
Qualified buyers can put as little as 3% down on a primary residence: the standard 97% option requires at least one first-time buyer, while HomeReady and Home Possible allow 3% down without first-time status but have income limits. Otherwise, 5% down is typical. Putting 20% down avoids private mortgage insurance (PMI). Second homes start at 10% down, and investment properties typically need 15–25% down.
Most lenders look for a credit score of 620 or higher. Higher scores generally qualify for better pricing, and scores in the lower range may mean a higher rate or a larger down payment. We'll show you how your score affects your options.
The FHFA sets conforming limits every year by county. For a single-family home in 2026, the limit is $832,750 in most Colorado counties; $862,500 in the Denver metro; $879,750 in Boulder County; $1,092,500 in Summit and Lake; $1,089,050 in Routt; $994,750 in San Miguel; $1,209,750 in Pitkin and Garfield; and $1,249,125 in Eagle County. Loans above your county's limit are jumbo loans, with different qualification criteria.
You can request PMI removal once your loan balance reaches 80% of the home's original value, and it's automatically removed at 78% based on your original payment schedule. If your home has appreciated, a new appraisal may help you reach the threshold sooner, subject to your servicer's requirements.
Conventional loans are often a better fit if your credit score is 620 or higher and you can put at least 3–5% down, because PMI can be removed later (unlike most FHA mortgage insurance). FHA may be better with lower credit scores. We'll compare both for your situation.
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