Conventional loans · North Carolina and South Carolina
Conventional loans in the Carolinas
A conventional loan is a mortgage that isn't insured or guaranteed by a government agency, and it suits buyers with solid credit and some money for a down payment. It's often the better choice if you don't qualify for a VA loan, or if you can put 20% down and want to avoid mortgage insurance.
Monthly principal and interest
$2,043
- Loan amount
- $315,000
With less than 20% down, expect private mortgage insurance on top of this figure. It depends on your credit and isn’t included here.
Example only. Not a quote, rate offer, or loan approval. Your rate and payment depend on your credit, the property, and lender approval.
Who qualifies for a conventional loan?
Conventional approval depends on your credit, income, debts, and down payment, and there’s no service or location requirement. Lenders commonly look for a credit score of about 620 or higher, and stronger scores generally get better pricing.
- Steady, documented income
- A debt load that leaves room for the new payment
- Money for the down payment and closing costs
- A credit history that meets the lender’s standards
What are the key numbers?
The figures below are the ones that shape most conventional loans. Your lender’s own requirements can be stricter.
| Item | Guidance |
|---|---|
| Minimum down payment | As low as 3% on some programs for qualifying buyers |
| Credit score | Commonly about 620 or higher, set by the lender |
| Mortgage insurance | Usually required below 20% down |
| PMI cancellation | Request at 80% of original value; generally automatic at 78% |
| 2026 baseline loan limit | $832,750 for a one-unit home (FHFA, November 25, 2025) |
What types of conventional loans are there?
Most conventional loans are either fixed-rate or adjustable-rate, and either conforming or jumbo. The right mix depends on your price and how long you plan to keep the home.
Fixed-rate. The rate stays the same for the full term, usually 15 or 30 years.
Adjustable-rate. The rate is fixed for an initial period and can then change.
Conforming. The loan is within the county’s limit, starting at the 2026 baseline of $832,750 for one unit.
Jumbo. The loan is above the conforming limit, and lenders usually apply stricter credit and reserve requirements.
How does the process work?
A conventional purchase moves from a numbers review to closing in four steps. Timing varies by file.
- Review your numbers. Compare your income, debts, savings, and credit against your target price.
- Get pre-approved. A lender reviews your documents and credit.
- Go under contract. Your lender orders the appraisal and completes underwriting.
- Close. Sign with the closing attorney. Both Carolinas use attorneys for residential closings.
What’s different in North and South Carolina?
Conventional guidelines are the same in both states, but taxes and closing costs aren’t. South Carolina’s lower 4% assessment on a legal residence has to be applied for through your county assessor.
North Carolina. The excise tax on the deed is $1 per $500 of the price and is usually paid by the seller.
South Carolina. The deed recording fee is $1.85 per $500 of value and is customarily paid by the seller.
Frequently asked questions
How much do I need to put down on a conventional loan?
Some conventional programs allow as little as 3% down, generally for qualifying buyers. Putting 20% down avoids private mortgage insurance.
When does private mortgage insurance go away?
You can ask your servicer to cancel PMI when your balance is scheduled to reach 80% of the home's original value. Your servicer generally must end it when the balance is scheduled to reach 78%, provided you are current on payments.
What is the 2026 conforming loan limit?
The 2026 baseline limit for a one-unit home is $832,750, set by the Federal Housing Finance Agency. Loans above your county's limit are generally jumbo loans.
Should a veteran choose a conventional loan over a VA loan?
Usually VA is stronger with little money down, because it has no monthly mortgage insurance. Conventional can make sense with 20% down, since it has no VA funding fee.
Written by Sahaad Washington, licensed mortgage loan officer, NMLS #1446971. Licensed in North Carolina and South Carolina.
Published · Last reviewed
Sources
- FHFA: Conforming loan limit values for 2026 (November 25, 2025)
- CFPB: When can I remove private mortgage insurance from my loan? (checked November 8, 2026)
Talk through your down payment options
A loan officer can compare a conventional loan against your other options using your numbers.