Current conventional guidelines, updated from one source.
The block below is the conforming rulebook reduced to the figures that decide a file, read from Lendmire’s single guideline source and refreshed on this page when the agencies or the wholesale overlays change: the down payment by buyer, the credit floor, the mortgage insurance threshold and its cancellation points, and the ratio maximums.
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
The insurance line in a conventional payment is a bridge, not a fixture: required above 80% loan-to-value, cancellable at 80% on request and 78% by law, and priced by the insurer on the score inside Fannie Mae’s published 0.58%–1.86% range. Twenty percent down skips it entirely.
With an automated approval; 36% to 45% on a manual file
An automated approval allows a total debt-to-income ratio up to 50%; a manually underwritten file is held to 36%, or 45% when the credit score and reserves meet the agencies’ matrix. The ratio is measured on the total housing payment plus every other monthly obligation against gross income.
| 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.
Not a commitment to lend, not an offer of credit, not a quote. The figures shown are current conforming program parameters and wholesale overlays that change without notice and apply only after full underwriting of the borrower and the property; the mortgage insurance range is Fannie Mae’s published typical range and the premium on any loan is set by the insurer. Conforming loan limits apply by county. Lendmire is a mortgage broker licensed in sixteen states for consumer mortgages, never the lender. 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 Durham file apart along exactly those lines.
For the program overview, see Lendmire’s conventional loan program, or the statewide guide at Conventional Loans in North Carolina; for the mortgage insurance cancellation rules, see the CFPB.
Leverage by occupancy and buyer
The agencies lend most on a home the borrower lives in and less as the occupancy changes: a one-unit principal residence reaches the top leverage, with the first-time buyer’s minimum the lowest down payment in the program; two- to four-unit homes, second homes, and investment properties step down from there, as the table in the snapshot shows for a Durham buyer.
Credit scores and automated underwriting
Conventional credit is priced more than it is gated. The agencies set no minimum score for a loan their automated system approves, the wholesale programs set a floor, and above the floor the score sets the loan-level price adjustments and the mortgage insurance premium. A Durham buyer with a stronger score pays less on both lines.
Mortgage insurance that cancels
Insurance structures vary: borrower-paid monthly is the default, and lender-paid, single-premium, and split-premium versions exist, each built into the loan differently. The published typical range in the snapshot is Fannie Mae’s, and the actual premium for a Durham file comes from the insurer at lock, never from this page.
Ratios, reserves, and the DU finding
Reserves are measured in months of the total housing payment and set by the finding, the occupancy, and the number of financed properties; a Durham second-home or investment file carries more than a principal residence. Income needs a two-year history and a reasonable expectation of continuing.
None of this is a decision. The appraisal can come in under the price, the rate is set at lock, the premium is set by the insurer, and the automated finding sets the reserves. What stays fixed is the structure the calculator reproduces: price, down payment, leverage, insurance, payment.
Where Durham buyers borrow — and how a conforming loan fits.
Three Census figures frame a Durham conventional file. Ownership says how much of the market the program reaches, the median value says what a low-down-payment loan typically comes to, and household income says what ratio that payment produces.
Read the figures as backdrop. Higher values mean a larger down payment in dollars and a larger insurance premium; lower values mean a payment that leaves more room under the ratio ceiling. The percentages do not move; what they amount to does.
Data sources: U.S. Census Bureau — ACS 5-Year (2024) housing and population estimates, including tenure, home values, gross rents, and household income.
Distinct Durham neighborhoods, distinct conventional files.
Where Durham buyers shop, and what the conforming file turns on in each place: the occupancy, the property type the appraiser sees, the project review it needs, and the price the ratio has to carry.
Two-to-four-unit homes
Durham duplexes and small apartment houses are conventional purchases at the multi-unit leverage in the snapshot when the buyer occupies one unit, with rent from the other units counted toward qualifying under the agencies’ rules. Roughly 66,203 Durham households own their homes on the latest Census estimate — 52% of all households, the pool a conventional purchase joins.
Newer infill and recent construction
New rows and recent infill in Durham 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. Durham counts a population near 291K within the Durham-Chapel Hill, NC area.
Established close-in neighborhoods
An older Durham 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 Durham sits near $81,619 on the latest Census estimate.
Higher-value homes
A high-value Durham 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. About 48% of Durham’s households rent — roughly 60,347 renter households on the latest Census estimate.
Condominiums and townhomes
Townhomes in Durham 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. On a home at Durham’s median value, the first-time buyer’s minimum down payment comes to about $11,800 and the standard minimum to about $19,600 — before closing costs, and before the mortgage insurance that comes with either.
Investor and second-home purchases
Durham rentals and pied-à-terre purchases run on conventional loans because FHA and VA finance principal residences only: the investment and second-home leverage in the snapshot, reserves for each financed property, and adjustments for the occupancy. The median owner-occupied home value in Durham runs near $392,800 on the latest Census estimate.
What the program accepts is the same everywhere in Durham: 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 Durham buyers put a conforming loan to work.
Because the agencies buy loans on principal residences, second homes, and investment property alike, the conventional loan is a program a Durham household can use for every home it owns. Four examples follow.
Buy a first home at the first-time-buyer minimum
A Durham 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.
Buy with twenty percent down and no insurance
A Durham buyer with twenty percent down takes the conventional loan’s cleanest form: no mortgage insurance at all, loan-level adjustments at the best tier the score allows, and a payment made of principal, interest, and escrows alone. Second homes and investment property are priced from the same structure.
Buy a condominium in a warrantable project
A Durham condominium is a conventional purchase when the project passes the agencies’ review: owner-occupancy mix, budget and reserves, litigation, commercial space, and ownership concentration. The dues enter the ratio, and the leverage follows the occupancy as it would on a house.
Buy an investment property
Investment property on a conforming loan is a common entry point for Durham 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.
Estimate the payment on a Durham price before requesting a quote.
Before you ask for a quote, size the payment yourself: the Durham price, the down payment, the term, the benchmark rate, the insurance estimate, and the escrows go in, and the thresholds and the ratio ceiling come from the same guideline source as the block above. The result is an estimate, the rate is a published market average, and the insurance figure is an editable estimate inside Fannie Mae’s published range.
Durham conventional payment estimate
The starting figures are a typical Durham 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 $395,000 price near Durham’s 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 North Carolina (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.
Most buyers can close the same purchase three ways, and the structures differ more than the labels suggest: conventional with insurance that cancels, FHA with a small investment and premiums for the life of the loan at full leverage, or VA with nothing down and no insurance for the eligible veteran.
Conventional, FHA, or VA.
Conventional fits the Durham buyer with a solid score: the premium is smaller than FHA’s for strong credit and it ends, there is no upfront premium, and twenty percent down removes insurance altogether. A modest score or a thin file is where FHA competes.
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 Durham 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 Durham household. See Lendmire’s VA loan program.
Where each one fits: conventional for the solid score, the move-up buyer, the second home, and the rental; FHA for the modest score and the small investment; VA for the eligible borrower buying a principal residence. Above the conforming limit, see the jumbo loan program.
What to prepare for a Durham scenario review.
The paperwork is the standard mortgage set, with the automated finding deciding how much of it the file actually needs; here is what a Durham scenario review typically draws on.
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.
When a Durham conventional file surprises someone, the cause is usually one of these: a premium higher than expected, a score that priced differently than hoped, an appraisal under the price, a project that failed review, or a loan amount over the conforming limit.
Use these checks to keep the Durham file clean and fundable.
A Durham file that is ready to review has already answered three questions: what leverage and therefore what insurance, what score and therefore what price, and whether the home is inside the agencies’ rules.
- Plan the insurance: it cancels on request at the request threshold and automatically at the termination threshold.
- Confirm the score: the score sets the loan-level adjustments and the insurance premium more than it gates the loan.
- Structure the contract: a relative’s gift may fund the whole down payment on a one-unit principal residence.
Mortgage insurance: how much, and until when
The premium on a Durham loan can be paid monthly, by the lender in exchange for a different price, as a single premium at closing, or split; the monthly structure cancels under the federal rules, and the others are priced by the lender. The calculator shows the monthly structure and the month the thresholds arrive on scheduled payments.
The score sets the cost
The score does two jobs on a Durham file: it feeds the automated assessment alongside the rest of the credit file, and it sets the cost of the loan and the insurance. A buyer close to a cost tier sometimes gains more from a short wait and a paid-down balance than from any other change.
Seller contributions and the down payment
Sellers and other interested parties may pay closing costs, prepaids, and other concessions up to a cap set by the combined loan-to-value, as the snapshot table shows; above the cap the excess reduces the price for sizing the loan. The down payment cannot come from the seller, but a relative’s gift can fund it on a one-unit principal residence.
Waiting periods after a credit event
A documented hardship beyond the borrower’s control, such as a job loss or a medical event, can shorten several of the waiting periods, and the shortened foreclosure period limits the leverage and the occupancy. A Durham file inside a waiting period is written later, not now.
The appraisal and value acceptance
Two outcomes matter on a Durham appraisal: the value, which caps the loan, and the condition, which the lender must find acceptable. A waiver or value acceptance, where the automated system offers one, removes both questions and the appraisal fee at once, and the file closes on the system’s valuation.
From a Durham pre-approval to keys in hand.
Four steps: the pre-approval, the appraisal, the underwriting, and the closing. The Durham version of each follows.
Pre-approval
A Durham pre-approval is a sizing exercise run through the automated system: the score, the income, the assets, the occupancy, and the price. The finding sets the ratio room and the reserves, and the loan officer puts the pre-approval in writing for the offer.
Contract and appraisal
The appraisal is a valuation first and a condition report second on a conventional file; a short value re-sizes the loan, and the Durham contract is adjusted or released under its contingency. Where the system offers value acceptance, the step collapses to the system’s figure.
Underwriting
Underwriting on a Durham conventional file is a verification of the finding: the documents behind the income and assets, the source of the down payment, the project review, and the insurance commitment for the leverage. Conditions are cleared and the approval is issued with its terms.
Closing
Closing is where the structure becomes a payment: principal and interest, the insurance while the loan is above the threshold, taxes and insurance. The Durham buyer takes the keys, and the lender delivers the loan to the agency it was written for.
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 Durham 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
The comparison printed on this page is run for real on every Durham file: conventional with the insurer’s actual premium beside FHA with its premiums beside VA where eligibility exists, and the written terms follow from it.
The insurance explained before the offer
The insurance is the program’s cost and the cancellation rules are its advantage, and Lendmire explains both first rather than last: how much the premium is, which structure fits, and when it ends for a Durham buyer at the price in hand.
Licensed, consumer-purpose, in writing
Lendmire carries the license for the state the Durham 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.
Durham conventional loan FAQs
What a conventional loan is, how much it takes to buy, what score it needs, how the mortgage insurance works and ends, and how the conforming limit works, answered for Durham buyers.
What is a conventional loan, and who is it for?
A conventional loan is a mortgage written to the rules of Fannie Mae and Freddie Mac so the lender can sell it to them after closing; no government agency insures it, and a private insurer covers the top slice above the leverage threshold. It fits the Durham buyer with a solid score, any down payment from the program minimum up, and any occupancy the agencies allow, including second homes and rentals.
How much do I need to put down on a conventional loan in Durham?
The first-time buyer’s minimum in the snapshot on a one-unit principal residence with a fixed rate, where a first-time buyer is anyone without an ownership interest in a home during the prior three years; the standard minimum for everyone else; and more for second homes, multi-unit homes, and investment property, as the leverage table shows. A relative’s gift may fund the whole down payment on a one-unit principal residence.
What credit score do I need for a conventional loan?
The floor in the snapshot opens the program; the score above it sets the cost. With more than one borrower the automated system uses the average of the median scores, and a Durham buyer close to a cost tier may gain from a short wait and a paid-down balance.
How does private mortgage insurance work, and when does it end?
Mortgage insurance applies when the loan runs above the leverage threshold in the snapshot and is paid monthly as part of the payment. The premium is priced by the insurer on the score and the leverage, inside the published range the snapshot shows. Under the Homeowners Protection Act the borrower may request cancellation at the request threshold on the original value, the servicer must terminate it automatically at the termination threshold, and it ends no later than the midpoint of the term.
What is the conforming loan limit in Durham?
There is a county limit, revised annually, and some counties carry a high-balance range above the standard figure. The loan officer confirms the current limit at pre-approval; above it, the jumbo program takes the file.
What debt-to-income ratio does a conventional loan allow?
Two ceilings: the higher one for automated approvals, the lower pair for manual underwriting. The housing payment counted includes the insurance while it applies, which is why cancellation lowers the ratio as well as the payment.
Can the down payment be a gift?
Yes, on a principal residence, from a relative or other acceptable donor, documented by letter and transfer. The seller cannot be the source, and on second homes and multi-unit homes above the threshold the buyer contributes a share of their own funds.
What happens after my Durham offer is accepted?
Your Durham contract goes to the lender, the appraisal is ordered or waived, and underwriting follows. The usual detours are a value under the price or a condition on an older home; a loan officer keeps the timeline honest.
Can I take cash out with a conventional refinance?
Yes, at the leverage in the snapshot for the occupancy, after the seasoning period. The cash-out loan carries its own loan-level adjustments, and the loan-to-value decides whether mortgage insurance applies to the new loan.
Can I buy a rental property with a conventional loan?
Investment property is inside the conventional program at a lower leverage than a principal residence. A Durham buyer documents the rents, shows reserves for every property financed, and accepts loan-level adjustments for the occupancy.
Run the Durham conventional numbers, then get the terms in writing.
When you are ready, a Durham review sizes the loan, settles the program and the insurance structure, and produces written terms. Nothing on this page commits anyone to lend.
This guide covers Durham — for the statewide guidelines, markets, and scenarios, see Conventional Loans in North Carolina, part of Lendmire’s conventional loan program.
Nearby markets in North Carolina: Cary · Raleigh · Greensboro · Winston-Salem · Charlotte
Related programs: FHA Loans · Jumbo Loans · Refinance Loans