Current conventional guidelines, updated from one source.
Treat these as the program’s fixed points rather than an offer: the minimum down payment for a first-time buyer and for everyone else, the credit floor behind these pages, the leverage at which mortgage insurance begins and the points at which it ends, and the ratio an automated approval allows.
First-time buyer; 5% standard; 97% loan-to-value at the top
The agencies set the floor at 3% down for a first-time buyer and 5% for a repeat buyer, on a principal residence; the whole down payment may be a gift from a relative on a one-unit home, and twenty percent down removes mortgage insurance from the payment entirely.
Priced on the score; no agency minimum with an automated approval
A 620 decision score opens the program on the wholesale side; the agencies set no minimum for an automated approval and 620 to 640 for manual underwriting by loan type. The strongest effect of the score is on cost, through loan-level adjustments and the mortgage insurance premium.
Required above 80% LTV; removed at 80% by request, 78% automatically
Above 80% loan-to-value the loan carries private mortgage insurance; at or below it, none. The insurance cancels on request at 80% of the original value and automatically at 78%, which is the single largest structural difference from FHA, whose premium at full leverage lasts for the term.
With an automated approval; 36% to 45% on a manual file
Total debt against gross income, up to 50% on an automated approval and 36% to 45% on a manual file. The housing payment counted includes the mortgage insurance while it applies, which is why cancellation changes the ratio as well as the payment.
| Purpose | Occupancy and program | Maximum LTV |
|---|---|---|
| Purchase | One-unit principal residence, first-time buyer (fixed rate) | 97% |
| Purchase | One-unit principal residence, standard | 95% |
| Purchase | HomeReady / Home Possible (income limits apply) | 97% |
| Purchase | Two- to four-unit principal residence | 95% |
| Purchase | Second home | 90% |
| Purchase | Investment property, one unit | 85% |
| Purchase | Investment property, two to four units | 75% |
| Refinance | Limited cash-out (rate-and-term), one-unit principal residence | 95% |
| Refinance | Cash-out, one-unit principal residence | 80% |
| Refinance | Cash-out, two to four units, second home or investment | 75% |
| Combined LTV | Maximum contribution |
|---|---|
| above 90 percent | 3% of the sales price |
| 75.01 to 90 percent | 6% of the sales price |
| 75 percent or less | 9% of the sales price |
| investment property (any) | 2% of the sales price |
| Event | Waiting period |
|---|---|
| Chapter 7 or 11 bankruptcy | four years from discharge or dismissal (two years with documented extenuating circumstances) |
| Chapter 13 bankruptcy | two years from discharge; four years from dismissal (two with extenuating circumstances) |
| Multiple bankruptcy filings | five years when more than one filing within the past seven years |
| Foreclosure | seven years (three with extenuating circumstances, then limited to a principal residence or second home at 90 percent LTV, purchase or limited cash-out) |
| Deed-in-lieu, short sale or mortgage charge-off | four years (two with extenuating circumstances) |
Mortgage insurance: Fannie Mae reports that private mortgage insurance typically ranged from 0.58%–1.86% of the loan amount a year; the premium on a specific loan is priced by the insurer on the score, the leverage, and the coverage, and is never quoted here. Gifts from relatives may fund the entire down payment on a one-unit principal residence. HomeReady and Home Possible lend to 97% with income at or below 80% of the area median; HomeOne lends to the same leverage with a first-time buyer and no income limit.
Current conventional snapshot · updated October 1, 2026 · principal residences occupied within sixty days, second homes, and one- to four-unit investment properties · conforming limits apply by county and are confirmed by a Lendmire loan officer · above the limit, see the jumbo program · no prepayment penalty · Lendmire is a broker, never the lender.
Informational only; not a commitment to lend, an approval, or a quote. Every figure on this page is a program parameter read from Lendmire’s guideline source, built on the agencies’ published guides, and may change without notice; eligibility, the loan amount, the insurance, and the ratios depend on the credit profile, the property, the occupancy, and underwriting. The mortgage insurance estimate is editable and not a premium quote. Lendmire is a mortgage broker licensed in sixteen states for consumer mortgages. NMLS #2371349.
What a conventional loan is — and how the file is qualified.
A conventional loan is a mortgage written to the rules of Fannie Mae and Freddie Mac so a lender can sell it to them after closing. Those rules decide the leverage by occupancy, the credit standard, the insurance above the threshold, and the ratios, and the four cards below take a Billings file apart along exactly those lines.
For the program overview, see Lendmire’s conventional loan program, or the statewide guide at Conventional Loans in Montana; for the mortgage insurance cancellation rules, see the CFPB.
Leverage by occupancy and buyer
Who the buyer is matters as much as what the home is. A first-time buyer, meaning no ownership interest in a home for three years, qualifies for the smallest down payment on a principal residence; a repeat buyer starts a little higher; and HomeReady, Home Possible, and HomeOne open the top leverage to buyers who meet their conditions.
Credit scores and automated underwriting
The automated system, DU on the Fannie Mae side and LPA on the Freddie Mac side, reads the whole credit file rather than a single number: the score, the depth of history, the recent events, and the seasoning after any derogatory event. The score it uses with more than one borrower is the average of the median scores.
Mortgage insurance that cancels
Twenty percent down means no mortgage insurance at all, and anything less means insurance for a while. The calculator on this page shows the Billings payment with the estimated premium and the payment after it ends, along with the month on the amortization schedule when the request and automatic thresholds arrive.
Ratios, reserves, and the DU finding
The automated finding is the hinge of a conventional file: it reads the income, the assets, the credit, and the property, allows a total debt ratio up to the automated maximum, and names the reserves the file must show. A Billings underwriter then verifies what the finding assumed.
A lender runs the same math on a Billings file with one difference: the insurer’s actual premium replaces the estimate. The estimate here starts at the low end of the published range and is editable, because the real figure depends on the score and the leverage.
Where Billings buyers borrow — and how a conforming loan fits.
These numbers are Billings’, not any one borrower’s: owner households, median home value, and household income from the U.S. Census Bureau. They give the scale of a typical purchase here; the score, the appraisal, and the household’s own income give the loan.
Citywide figures provide general market context, not an appraisal or an income calculation. Income sets the ratio, value sets the loan and the premium, and the down payment sets the leverage. The Census describes the first two for the market; the file supplies all three for the borrower.
Data sources: U.S. Census Bureau — ACS 5-Year (2024) housing and population estimates, including tenure, home values, gross rents, and household income.
Distinct Billings neighborhoods, distinct conventional files.
A Billings condominium, a decades-old family house, and a lakefront second home are three different conventional files: different project reviews, different leverage, different reserves. The six submarkets below show the range.
Established close-in neighborhoods
An older Billings house is a routine conventional purchase; the appraisal is lighter on condition than a government appraisal, which is one reason buyers of older homes often choose this program. The value against the contract price is the usual question. Median household income in Billings sits near $73,712 on the latest Census estimate.
Newer infill and recent construction
New rows and recent infill in Billings tend to appraise cleanly, which moves the question to the loan amount: a contract near the conforming limit is confirmed against the county figure before the offer, and a loan above it needs a larger down payment or the jumbo program. Billings counts a population near 119K within the Billings, MT area.
Two-to-four-unit homes
Owner occupancy of one unit sets the leverage on a Billings multi-unit conventional loan; without it, the property is an investment purchase at the lower investment leverage. The appraisal reads every unit and the rents. About 35% of Billings’ households rent — roughly 17,935 renter households on the latest Census estimate.
Condominiums and townhomes
Townhomes in Billings finance like houses when they are fee simple and like condominiums when they are organized as one; the lender settles which before the appraisal, and the leverage follows the occupancy either way. Roughly 33,059 Billings households own their homes on the latest Census estimate — 65% of all households, the pool a conventional purchase joins.
Higher-value homes
A high-value Billings purchase can still be a conforming loan when the loan amount fits under the county limit, and a high-cost county’s higher range extends that reach; above it, the jumbo program takes the file with its own leverage and reserves. The median owner-occupied home value in Billings runs near $343,400 on the latest Census estimate.
Investor and second-home purchases
A second home in Billings, occupied part of the year and never run as a rental business, is a conventional file at the second-home leverage with deeper reserves and part of the down payment from the buyer’s own funds. On a home at Billings’ median value, the first-time buyer’s minimum down payment comes to about $10,300 and the standard minimum to about $17,200 — before closing costs, and before the mortgage insurance that comes with either.
What the program accepts is the same everywhere in Billings: houses, warrantable condominiums, planned developments, manufactured homes that meet the agencies’ rules, two- to four-unit homes, second homes, and investment property, each at its own leverage. What it declines is the non-warrantable project and the loan above the conforming limit, which belong to other programs.
Four ways Billings buyers put a conforming loan to work.
Billings borrowers use conforming loans for reasons that repeat: the first purchase at the first-time-buyer minimum, the purchase with twenty percent down and no insurance, the second home or rental no government program will finance, and the refinance or cash-out on a home with equity.
Buy with twenty percent down and no insurance
Twenty percent down removes the insurance line from the payment on any conventional purchase in Billings; between the minimum and twenty percent, the insurance applies for a while and then ends, and the calculator shows both payments.
Buy a condominium in a warrantable project
Condominiums are a common first purchase in Billings, and a warrantable project is financed like a house with the dues in the ratio; a project that fails the review is outside the conforming program and goes to a portfolio lender instead.
Buy an investment property
Investment property on a conforming loan is a common entry point for Billings landlords: one to four units, a down payment set by the leverage table, rental income counted under the agencies’ rules, and a cap on how many financed properties one borrower may hold.
Buy a first home at the first-time-buyer minimum
A Billings buyer who has not owned a home in three years qualifies for the program’s smallest down payment on a one-unit principal residence with a fixed rate; the down payment can be a gift from a relative, the seller can pay closing costs within the cap, and the insurance cancels as equity grows.
Estimate the payment on a Billings price before requesting a quote.
Enter a Billings price, the down payment, and the buyer type, choose a term, and the calculator returns the loan and its loan-to-value, principal and interest, the estimated mortgage insurance while the loan is above the threshold, taxes and insurance, the payment after the insurance ends, and the ratio if you enter income. It also shows the month the balance reaches the cancellation thresholds. The rate field holds the weekly Freddie Mac benchmark as a market reference, never a quote.
Billings conventional payment estimate
The starting figures are a typical Billings price at the first-time buyer’s minimum down payment. Replace them with yours.
Editable benchmark: 7.03% as of September 24, 2026 · Freddie Mac 30-year average via FRED®. A conventional market reference, not a conventional loan quote.
Estimate seeded at the low end of Fannie Mae’s published range (0.58%–1.86% a year); the insurer prices the actual premium on the score and the leverage. Applies only above 80% loan-to-value.
Illustrative starting assumptions: a $345,000 price near Billings’ median owner-occupied home value, the first-time buyer’s minimum down payment, a thirty-year term at the current Freddie Mac benchmark, mortgage insurance at the low end of Fannie Mae’s published range, property taxes and insurance estimated for Montana (U.S. Census Bureau). Every field is editable.
Illustrative estimate only — not a Loan Estimate, approval, quote, or commitment to lend. The rate field carries the weekly Freddie Mac thirty-year conventional benchmark, a market reference and not a conventional loan quote; your rate is set by the lender at lock. The mortgage insurance figure is an editable estimate seeded from Fannie Mae’s published typical range, not a premium quote; the insurer prices the actual premium, and the cancellation month assumes scheduled payments with no extra principal and no change in value. Taxes, insurance and dues are editable estimates; closing costs are not included. Conforming loan limits apply by county. Licensed in sixteen states for consumer mortgages.
Same buyer, three very different closings.
The score, the down payment available, VA eligibility, and the expected length of the loan decide which program wins. Here are the three, one next to the other.
Conventional, FHA, or VA.
The program’s strengths are the cancellable insurance, the breadth of occupancies, and a cost structure that rewards a strong score; its weakness is the same structure applied to a weak one. A Billings buyer with a strong score usually pays less each month here than on FHA.
Where conventional prices the score, FHA prices by schedule. FHA fits the buyer whose score would be priced heavily on a conventional loan, or who needs the ratio ladder’s room; it rarely wins for a Billings buyer with strong credit and a down payment above the minimum. See Lendmire’s FHA loan program.
VA beats conventional on the principal residence for nearly every eligible borrower; conventional beats VA on everything VA does not touch: second homes, rentals, and buyers without the certificate. The two often sit side by side in one Billings household. See Lendmire’s VA loan program.
The decision is rarely close once the profile is known. Conventional tends to win the strong score and every non-primary occupancy, FHA the modest score, and VA nearly any eligible principal residence. The comparison is run on the actual numbers, in writing. Above the conforming limit, see the jumbo loan program.
What to prepare for a Billings scenario review.
What a lender reads on a Billings conventional loan, and what you can have ready before anyone asks.
This is a general preparation guide, not a universal checklist. The selected lender may request additional information based on the transaction, the property, the automated underwriting finding, and the income picture. Nothing here is legal or tax advice.
Local details that can change the loan.
The percentages tell only part of the story. What a Billings conventional loan actually becomes depends on the score, the appraisal, the project review, and the automated finding, and these are the details that move it.
Use these checks to keep the Billings file clean and fundable.
The list is short because the program is: the insurance, the score, and the property decide most Billings files before income is even opened.
- Plan the insurance: it cancels on request at the request threshold and automatically at the termination threshold.
- Confirm the score: a self-pulled score can differ from the decision score.
- Count the properties: the agencies cap the number of financed properties per borrower.
Mortgage insurance: how much, and until when
Cancellation on request needs a good payment history, no subordinate liens, and no decline in value; automatic termination needs only that the loan be current. A Billings owner whose home has gained value may also ask the servicer to recognize the current value under its own rules, which is a servicer decision rather than a program right.
The score sets the cost
The decision score is read from the lender’s report, and with more than one borrower the automated system uses the average of the median scores. On a Billings conventional file the score rarely ends eligibility, but it sets the loan-level adjustments and the insurance premium, so a difference of a few points can change the monthly cost.
Second homes, rentals, and financed-property limits
A Billings household can hold several conventional loans at once, but each financed property adds reserves to the next file and the agencies cap the number of financed properties a borrower may have. Second homes and rentals are leveraged lower than a principal residence and priced for the occupancy.
Waiting periods after a credit event
The agencies season credit events rather than barring them: each bankruptcy chapter, a foreclosure, a deed-in-lieu, and a short sale carry their own period, shortened by documented extenuating circumstances. The snapshot table shows each one for a Billings buyer planning the timing.
The appraisal and value acceptance
When the value comes in under the contract price on a Billings file, the loan is sized on the lower figure: the buyer brings the difference, the price is renegotiated, or the contract is released under its appraisal contingency. Condition findings are rarer than on government loans but still appear on older homes.
From a Billings pre-approval to keys in hand.
Underneath, the Billings process is any mortgage process; what makes it conventional is the automated finding, the project review where it applies, the leverage by occupancy, and the insurance threshold. Each step below says what happens and what the buyer does.
Pre-approval
Start with the score, the income, the down payment, and the occupancy. A Lendmire loan officer runs the automated system, confirms the leverage and the insurance for the down payment chosen, checks the loan against the conforming limit, compares the structure with FHA and VA on the same numbers, and provides the terms in writing.
Contract and appraisal
With the contract signed, the lender orders the appraisal, or accepts the value the automated system offers where a waiver applies. Seller contributions are checked against the cap for the leverage, and a condominium’s project documents are collected for review before the file moves on.
Underwriting
The underwriter verifies what the automated finding assumed: the income, the assets and reserves, the credit and any seasoning, the occupancy, and the property. A manual file follows the lower ratio pair instead. Conditions are issued, documented, and cleared before the approval is final.
Closing
At closing the loan is funded at the leverage chosen, the mortgage insurance begins with the first payment where the loan sits above the threshold, and the escrows for taxes and insurance are set up. A Billings buyer signs the note and the security instrument, occupies the home within the occupancy window, and the loan is sold to the agency.
A brokerage that prices the whole market.
A single lender prices a conventional loan one way; a brokerage with several wholesale programs prices it several ways and shows a Billings buyer which one costs less on the same score and leverage, with the insurance quoted by the insurer rather than guessed.
Several programs, one set of numbers
Before any recommendation, the Billings file is priced across the wholesale programs Lendmire works with and run against FHA and VA on the same price, score, and down payment. The buyer sees the payment, the insurance line, and the cash to close for each, and the choice follows the figures.
The insurance explained before the offer
The premium and its exit are decided by the leverage and the score, and a buyer should know both before signing a contract. Lendmire states the structure for the Billings purchase, shows the payment before and after cancellation, and explains the request and automatic thresholds.
Licensed, consumer-purpose, in writing
Lendmire carries the license for the state the Billings home is in, delivers the disclosures a consumer mortgage requires, and commits the terms to paper. The program figures on this page are read from one guideline source built on the agencies’ published guides.
Trusted by buyers & families alike.
Billings conventional loan FAQs
The questions below come up on nearly every Billings conventional conversation. The answers are general; the figures in the snapshot above are the program’s current parameters.
What is a conventional loan, and who is it for?
A conventional loan is the mortgage a Billings buyer with good credit should compare first: a low down payment for the first-time buyer, insurance that cancels, no upfront premium, and the breadth to finance a second home or a rental under the same rules.
How much do I need to put down on a conventional loan in Billings?
It depends on who is buying and how the home will be used. A first-time buyer starts at the lowest figure in the snapshot, a repeat buyer slightly higher, and a Billings second home or rental higher still. Twenty percent down removes mortgage insurance entirely.
What credit score do I need for a conventional loan?
The snapshot shows the floor. More useful than the number is what sits around it: a seasoned derogatory event is inside the rules after its waiting period, a thin file may need manual underwriting with tighter ratios, and the score drives the insurance premium on a Billings loan.
How does private mortgage insurance work, and when does it end?
Above the threshold the insurance is part of the Billings payment; below it, there is none. Fannie Mae publishes the typical annual range shown in the snapshot, the insurer prices the actual premium, and the federal cancellation rules end it as equity arrives.
What is the conforming loan limit in Billings?
Ask a loan officer for the county’s current limit; it changes yearly and by unit count. Above it, a Billings purchase is still possible with a larger down payment on a conforming loan or on a jumbo loan.
Can I buy a second home with a conventional loan?
Yes. The conventional loan is the consumer program that finances second homes: the leverage table shows the down payment for that occupancy, the buyer qualifies on the full payments of both homes, the finding sets the reserves, and the home must be for the owner’s own use rather than a full-time rental.
Should I choose a conventional loan or FHA?
Run both. A strong score and a down payment above the minimum point to conventional, where the insurance is smaller and ends; a modest score and the smallest possible investment point to FHA. The comparison is made on the actual payment and the cash to close.
Can I get a conventional loan after a bankruptcy or foreclosure?
Yes, with seasoning. The waits run longer than the government programs’ as a rule, which is why a Billings buyer inside one often starts on FHA or VA and refinances into conventional later.
What does the appraisal check on a conventional loan?
Value against the contract price, and condition against the lender’s standard of safe, sound, and marketable. Older Billings homes draw condition notes more often; most are settled before closing.
What are HomeReady, Home Possible, and HomeOne?
Agency programs that open the top conventional leverage to buyers who meet their conditions: HomeReady from Fannie Mae and Home Possible from Freddie Mac for borrowers with income at or below the area-median threshold in the snapshot, with reduced insurance coverage and a homeownership course; HomeOne from Freddie Mac for first-time buyers with no income limit. Each is a conventional loan with its own rules on top.
Buy in Billings with a low down payment and insurance that ends.
Begin with a scenario review: the price, the down payment, the score, the income, and the occupancy. A licensed Lendmire loan officer prices the file across the wholesale programs, runs it beside FHA and VA, and puts the terms in writing.
This guide covers Billings — for the statewide guidelines, markets, and scenarios, see Conventional Loans in Montana, part of Lendmire’s conventional loan program.
Nearby markets in Montana: Bozeman · Helena · Great Falls · Missoula · Whitefish
Related programs: FHA Loans · Jumbo Loans · Refinance Loans