Conventional Loans in Georgia

Most home purchases in the United States are financed with a conventional mortgage. Conventional loans are the backbone of the American mortgage system, representing the majority of all residential loans originated each year. For Georgia buyers with solid credit, verifiable income, and at least a modest down payment, a conventional loan is almost always the most cost-effective choice and frequently the most straightforward path to closing.

A conventional loan is any mortgage not insured or guaranteed by a federal government agency. Most conventional loans in Georgia are also conforming loans, meaning they meet the purchase guidelines set by Fannie Mae and Freddie Mac and stay within the loan limits set annually by the Federal Housing Finance Agency. This conforming status allows lenders to sell these loans on the secondary mortgage market, which keeps rates competitive and credit available across the state.

For 2026, the conforming loan limit across all Georgia counties is $832,750 for a single-family home, according to JVM Lending's 2026 Georgia conforming loan limit analysis. Georgia has no FHFA-designated high-cost counties, so this single limit applies uniformly from Atlanta to Savannah to the most rural Georgia county. Loans above $832,750 require jumbo financing.

Truss Financial Group originates conventional conforming purchase loans, conventional refinance loans, and conventional jumbo loans for Georgia buyers and homeowners across every market in the state.

What Is a Conventional Loan?

A conventional loan is a mortgage originated by a private lender, bank, credit union, or mortgage company that is not insured by a federal government agency. This distinguishes it from FHA loans (insured by the Federal Housing Administration), VA loans (guaranteed by the Department of Veterans Affairs), and USDA loans (guaranteed by the U.S. Department of Agriculture).

Most conventional loans are conforming, meaning they follow the underwriting guidelines established by Fannie Mae and Freddie Mac, the government-sponsored enterprises that purchase these loans from lenders and package them into mortgage-backed securities. This secondary market mechanism is what makes conventional mortgage rates consistently competitive: lenders who know they can sell qualified loans to Fannie and Freddie can price them competitively because their capital is recycled continuously rather than locked up in long-term assets.

Conventional loans that exceed the conforming loan limit, currently $832,750 in Georgia, are called jumbo loans. Jumbo loans are also conventional but are not conforming, and they are held on lender balance sheets or sold through private secondary markets rather than to Fannie and Freddie. Jumbo programs are covered in the Jumbo Loans in Georgia page in this series.

The practical difference for Georgia buyers between conventional conforming and government-backed loans is primarily in credit requirements, mortgage insurance structure, and income documentation. Conventional loans have historically required stronger credit but offer the ability to cancel mortgage insurance once equity reaches 20%, which government-backed programs typically do not allow as easily.

2026 Conventional Loan Limits in Georgia

The 2026 conforming loan limit is $832,750 for a single-family home in all Georgia counties, according to the FHFA 2026 announcement and JVM Lending's state-specific analysis. This represents an increase from the 2025 limit of $806,500 and reflects the annual adjustment based on changes in average U.S. home prices.

Georgia has no high-cost county designations. Every county in the state uses the same baseline limit. This is different from states like California, Hawaii, Colorado, and Virginia where coastal or metro areas are designated high-cost, with limits up to $1,249,125. In Georgia, whether you are buying in Fulton County in Atlanta or in a small south Georgia county, the conventional loan limit is $832,750.

2026 Georgia Conventional Loan Limits by Property Type

For single-family homes: $832,750. For two-unit properties (duplex): $1,065,950. For three-unit properties (triplex): $1,288,550. For four-unit properties (quadplex): $1,601,750.

For Georgia buyers purchasing multi-unit properties as primary residences, the higher loan limits for two, three, and four unit properties are significant. A buyer who lives in one unit of a duplex and rents the other qualifies for conventional owner-occupied financing up to $1,065,950 rather than being limited to the single-family limit, and typically receives owner-occupied rate pricing rather than investment property rates.

Why the Conforming Limit Matters

Staying within the conforming limit is financially meaningful. Conforming loan rates are typically 0.25% to 0.50% below comparable jumbo rates because of the secondary market liquidity that Fannie and Freddie provide. On an $800,000 loan, the difference between a conforming rate and a jumbo rate could represent $100 to $200 per month in payment difference. Georgia buyers whose loan amounts are close to $832,750 should evaluate whether a slightly larger down payment to stay under the conforming limit produces long-term savings that outweigh the additional cash at closing.

Conventional Loan Requirements in Georgia

Credit Score The minimum credit score for a conventional loan is 620 for most programs. As of November 2025, Fannie Mae and Freddie Mac removed the hard 620 minimum threshold from their automated underwriting system guidelines, replacing it with an overall credit risk evaluation. In practice, most lenders continue to apply a 620 minimum as an internal credit overlay. Better pricing begins at 680 and above, with the most favorable conventional rates available to borrowers at 740 and above, according to multiple 2026 conventional loan requirement analyses.

Fannie Mae and Freddie Mac's credit score removal does not mean conventional loans are easier to obtain with low scores. Automated underwriting systems now evaluate the full credit profile holistically. A borrower with a 600 score may be approved if every other factor is strong, but the pricing will reflect the higher risk. For most Georgia buyers, targeting 680 or above before applying will produce meaningfully better rate offers.

Down Payment The minimum down payment for a conventional loan depends on the borrower's profile and the program:

For first-time homebuyers on Fannie Mae's HomeReady or Freddie Mac's Home Possible programs: 3% down. Income limits apply, and the borrower must not have owned a home in the past three years.

For standard Fannie Mae and Freddie Mac programs with a first-time buyer certification: 3% down.

For repeat buyers on standard conventional programs: 5% down.

For second homes: 10% to 15% down typically.

For investment properties: 15% to 25% down depending on property type and number of units.

All down payments of less than 20% require private mortgage insurance until the loan-to-value ratio reaches 80%.

Debt-to-Income Ratio The maximum DTI for conventional loans is typically 43% to 45% under automated underwriting. With compensating factors such as high credit scores, significant cash reserves, or substantial equity, some programs approve DTI ratios up to 50%. Most lenders prefer a back-end DTI below 36% for the cleanest approvals with the best pricing, but the market is flexible for well-qualified borrowers. NerdWallet's 2026 conventional loan analysis notes that most lenders prefer DTI below 36% but accept higher ratios with compensating factors.

Income and Employment Two years of stable, documented employment history is the standard requirement. Recent job changes within the same field are generally acceptable. Gaps in employment of less than six months require explanation but are typically manageable. Self-employed borrowers must provide two years of personal and business tax returns, and income is typically calculated from the lower of the two years or the two-year average, whichever is less favorable for qualification.

For self-employed Georgia borrowers whose tax returns significantly understate their actual income due to legitimate deductions, a NonQM bank statement loan is generally the better path. The self-employed mortgage pages elsewhere in this series address that scenario in detail.

Cash Reserves Most conventional programs require verified liquid reserves after closing: typically two to three months of PITIA for primary residence purchases, three to six months for second homes, and six months or more for investment properties. Borrowers with thinner credit profiles may be required to demonstrate higher reserves as a compensating factor. Reserves must be held in liquid accounts: checking, savings, money market, or readily accessible investment accounts.

Private Mortgage Insurance Conventional loans with down payments below 20% require PMI. PMI typically costs between $30 and $70 per $100,000 borrowed annually, added to the monthly payment. PMI can be eliminated once the loan balance reaches 80% of the original appraised value through scheduled principal payments, or at 80% of the current appraised value through a reappraisal if market appreciation has produced enough equity. PMI elimination is one of the key advantages of conventional financing over FHA: FHA MIP on loans with less than 10% down continues for the life of the loan, while conventional PMI is cancellable.

Property Types Single-family homes, condominiums, townhomes, planned unit developments (PUDs), and two to four unit multi-family properties are eligible for conventional financing. Investment properties and second homes require larger down payments and may carry slightly higher rates than primary residence loans.

Conventional Loan Programs in Georgia

Standard Fannie Mae and Freddie Mac Conforming Loans The most common conventional mortgage programs. Fixed rates over 15 or 30 years. Available for primary residences, second homes, and investment properties. Standard qualification requirements as described above.

Fannie Mae HomeReady A low-down-payment conventional program for first-time buyers and low-to-moderate income borrowers in Georgia. Minimum 3% down payment. Income limits apply: borrowers cannot exceed 80% of area median income for the property's census tract, though there are no income limits in underserved areas. Allows non-traditional income sources including boarder income (rental income from someone living in the home). PMI is required below 20% equity but at a reduced rate compared to standard conventional PMI. Requires completion of a homebuyer education course.

Freddie Mac Home Possible Similar to HomeReady, Home Possible is Freddie Mac's 3% down conventional program for income-qualifying borrowers. Income limits apply at 80% of area median income. Available to first-time and repeat buyers unlike some other low-down-payment programs. Allows co-borrower income even when the co-borrower does not occupy the property.

97% LTV Conventional (3% Down Standard) Fannie Mae and Freddie Mac both offer standard 97% LTV programs for first-time buyers with a minimum credit score of 620. These programs do not have income limits like HomeReady and Home Possible but may have slightly different pricing. For Georgia first-time buyers with incomes above the AMI threshold for HomeReady, the standard 97% LTV program is the primary 3% down conventional option.

Conventional with Lender-Paid PMI Some Georgia lenders offer conventional loans where the lender pays PMI upfront and incorporates the cost into a slightly higher interest rate. This eliminates the monthly PMI line item from the payment, which some borrowers prefer for budgeting clarity, though the total cost over the loan's life may be higher than borrower-paid PMI depending on how long the loan is held.

Conventional Refinance Rate-and-term refinances and cash-out refinances are available on conventional programs. Cash-out refinances allow up to 80% LTV on primary residences, 75% on second homes, and 70% to 75% on investment properties under standard Fannie Mae and Freddie Mac guidelines, according to LendingTree's Fannie Mae guidelines analysis.

Conventional Loan Requirements at a Glance

Georgia Conventional Loan Requirements Table

Conventional vs. FHA vs. VA: Choosing the Right Georgia Mortgage

The most common mortgage comparison Georgia buyers make is conventional versus FHA, and for eligible veterans, conventional versus VA. Understanding when conventional wins and when it does not is essential for making the right choice.

When Conventional Is the Best Choice

Conventional financing is usually the right answer for Georgia buyers with credit scores of 720 or above who can put down 20% or more. These borrowers avoid PMI entirely, access the most competitive conventional rates, and have no loan limit concerns for most Georgia properties. They also avoid FHA's upfront mortgage insurance premium and the lifetime annual MIP requirement.

For buyers with 680 to 720 credit scores and down payments of 10% or more, conventional financing typically becomes competitive with FHA and may be preferable because the PMI cost is lower than FHA's combined MIP cost at these credit and equity levels, and the PMI can be eliminated once equity reaches 20%.

For VA-eligible borrowers, VA financing is almost always superior to conventional because it offers zero down payment and no PMI. The only cases where conventional is preferable to VA are non-primary residence purchases, non-warrantable condos, or situations where the VA funding fee (if not waived) makes a conventional option financially closer.

When FHA Is the Better Choice

For Georgia buyers with credit scores below 680, especially those with scores between 580 and 679 making small down payments, FHA financing typically provides better access and better effective pricing than conventional. Conventional PMI for borrowers in this credit range is significantly more expensive than for higher-score borrowers, and the rate itself is higher. FHA's relatively uniform pricing across credit bands makes it more cost-effective for lower-credit borrowers.

For buyers with higher DTI ratios that exceed conventional limits but stay within FHA's more permissive thresholds, FHA provides access that conventional programs do not.

The PMI Comparison

The most commonly misunderstood comparison between conventional and FHA involves mortgage insurance. FHA's MIP for loans with less than 10% down continues for the life of the loan, meaning it never goes away without refinancing. Conventional PMI is eliminable once the loan-to-value ratio reaches 80%, through either scheduled principal payments or market appreciation. For Georgia buyers who plan to remain in the home for several years, a conventional loan at a slightly higher PMI payment but with an elimination date is often cheaper over the full hold period than an FHA loan with lifetime MIP.

Comparison Table: Conventional vs. FHA vs. VA for Georgia Buyers

Conventional Loan Rates in Georgia

Conventional loan rates in Georgia track the national conforming loan market. The 30-year fixed rate was averaging approximately 6.50% as of late April 2026, according to Bankrate's Georgia mortgage rate analysis. The 15-year fixed rate averaged approximately 6.13%.

Rates vary meaningfully by credit score, down payment, loan amount, property type, and occupancy status. The rate a specific Georgia borrower receives will differ from published averages based on these individual factors.

Rate factors for Georgia borrowers:

Credit score is the largest pricing variable after the base rate. Borrowers at 760 and above typically access rates at or below the published average. Borrowers at 680 to 720 pay a moderate premium. Borrowers at 620 to 679 pay a more significant premium.

Loan-to-value ratio is the second major pricing variable. Larger down payments reduce the rate, both because they reduce lender risk directly and because they eliminate or reduce the cost of PMI when below 20%.

Property type affects pricing: primary residences carry the base rate, second homes add approximately 0.25% to 0.50%, and investment properties add 0.50% to 1.00% or more.

Points can be used to buy down the rate. One point equals 1% of the loan amount paid upfront to reduce the interest rate by approximately 0.25%. Georgia buyers with available cash who plan to hold the loan for many years should evaluate whether buying points produces enough lifetime interest savings to justify the upfront cost.

Adjustable-rate mortgages offer lower initial rates than 30-year fixed loans, with rate adjustment after the initial fixed period. A 5/1 ARM is fixed for five years then adjusts annually. For Georgia buyers who plan to sell or refinance within the fixed period, an ARM may produce meaningful payment savings. For buyers who expect to hold the property for the full loan term, the rate certainty of a 30-year fixed typically outweighs the ARM's initial savings.

The PMI Deep Dive: Costs, Cancellation, and Strategies

PMI is the primary tradeoff for Georgia conventional buyers putting down less than 20%. Understanding PMI fully helps buyers make informed decisions about whether to increase the down payment to avoid it, accept it and plan for cancellation, or evaluate FHA as an alternative.

PMI Cost Range PMI typically costs $30 to $70 per $100,000 borrowed annually, according to Fannie Mae guidelines analysis by LendingTree. On a $400,000 loan, annual PMI ranges from $1,200 to $2,800, or $100 to $233 per month. The exact cost depends on the credit score, the loan-to-value ratio, and the specific PMI provider. Higher credit scores and lower LTV ratios produce lower PMI rates.

PMI Cancellation Federal law (the Homeowners Protection Act) requires lenders to cancel PMI automatically when the loan balance reaches 78% of the original purchase price based on scheduled amortization. Borrowers can request PMI cancellation when the loan reaches 80% LTV through scheduled payments. Borrowers can also request cancellation at 80% LTV based on a new appraisal demonstrating current market value, which allows earlier cancellation if home values have appreciated.

For Georgia homeowners who purchased before 2022 and have seen property values appreciate, requesting an appraisal to establish current value may allow PMI cancellation significantly earlier than the scheduled amortization date.

PMI vs. 20% Down Decision Many Georgia buyers wonder whether to put 20% down to avoid PMI or to put less down and accept PMI. The calculus depends on opportunity cost. If the additional down payment dollars could earn more in an investment account than the PMI costs, keeping those dollars invested and accepting PMI may be financially superior, particularly if the home will appreciate enough to allow early PMI cancellation through an appraisal.

How the Conventional Loan Process Works in Georgia

Step 1: Pre-Approval (Same Day to 24 Hours) Submit income documentation, credit authorization, and basic financial information. Receive a pre-approval letter based on verified qualification reflecting the maximum loan amount at current rates. A conventional pre-approval requires income documentation upfront, unlike some lower-documentation programs, but produces the strongest pre-approval letter for competitive Georgia markets.

Step 2: Property Selection and Offer With a conventional pre-approval in hand, buyers can shop with confidence. Conventional pre-approvals are the most universally accepted by Georgia sellers and listing agents. In competitive markets, the strength and verifiability of a conventional pre-approval can be a differentiating factor.

Step 3: Appraisal (1 to 2 Weeks) A standard appraisal establishes the market value of the subject property. Unlike FHA and VA programs, conventional appraisals do not check property condition against prescriptive minimum property standards. This makes conventional loans more flexible for properties that might have deferred maintenance or condition issues that would be flagged by a government-backed appraisal.

Step 4: Underwriting (5 to 14 Business Days) Income, credit, assets, appraisal, and title are all reviewed. Automated underwriting through Fannie Mae's Desktop Underwriter or Freddie Mac's Loan Product Advisor produces a rapid initial decision for most clean files. Manual underwriting is available for files that do not receive automated approval.

Step 5: Closing (21 to 35 Days Total) Most Georgia conventional loan transactions close within 21 to 35 days of a complete application. Georgia requires a licensed attorney to conduct the closing, which is standard across all Georgia purchase transactions regardless of loan type.

Georgia Cities and Markets We Serve

Truss Financial Group originates conventional conforming and jumbo loans across the entire state of Georgia. We serve first-time buyers, repeat buyers, move-up buyers, refinancing homeowners, and real estate investors in every major Georgia market, including:

Atlanta Metro: Atlanta, Sandy Springs, Buckhead, Midtown, Alpharetta, Marietta, Dunwoody, Roswell, Decatur, Smyrna, Kennesaw, East Cobb, Duluth, Norcross, Lawrenceville, Peachtree City, Fayetteville, Newnan, Woodstock, Canton, Johns Creek, Vinings, Brookhaven

Coastal Georgia: Savannah, Tybee Island, Brunswick, St. Simons Island, Jekyll Island, Sea Island, Darien, Hinesville, Pooler

Northeast Georgia: Athens, Gainesville, Dahlonega, Cumming, Buford, Blue Ridge, Ellijay, Braselton

Central and West Georgia: Macon, Columbus, Warner Robins, Valdosta, Albany, LaGrange, Carrollton

East Georgia: Augusta, Evans, Martinez, Statesboro, Milledgeville

Frequently Asked Questions

What is a conventional loan and how is it different from an FHA loan?

A conventional loan is a mortgage not insured by a federal government agency. Most conventional loans are conforming, meaning they follow Fannie Mae and Freddie Mac guidelines and stay within the $832,750 Georgia conforming limit. FHA loans are insured by the Federal Housing Administration and have their own loan limits, credit standards, and mortgage insurance requirements. Conventional loans are typically better for buyers with 680+ credit and 10% or more to put down because PMI can be eliminated, while FHA is often better for buyers with lower credit scores and minimal down payments.

What is the 2026 conventional loan limit in Georgia?

The 2026 conforming loan limit is $832,750 for single-family homes in all Georgia counties. Georgia has no high-cost county designations, so this single limit applies statewide. For two-unit properties, the limit is $1,065,950. For three units, $1,288,550. For four units, $1,601,750.

How much do I need to put down for a conventional loan in Georgia?

First-time homebuyers on HomeReady or Home Possible programs can qualify with 3% down. First-time buyers on standard conventional programs can also access 3% down. Repeat buyers typically need 5% down on primary residences. Second homes require 10% to 15%. Investment properties require 15% to 25% depending on units. Putting down 20% eliminates the PMI requirement.

What credit score do I need for a conventional loan in Georgia?

Most lenders require a minimum FICO score of 620 as a practical baseline. Better pricing begins at 680 and above. The most competitive rates and lowest PMI costs are available at 740 and above. As of November 2025, Fannie Mae and Freddie Mac removed the hard 620 minimum from their automated underwriting, evaluating the full credit profile holistically, though most lenders still apply 620 as an internal minimum.

Does a conventional loan require PMI?

PMI is required whenever the down payment is below 20%. PMI is cancellable once the loan-to-value ratio reaches 80% of the original purchase price through scheduled amortization, or 80% of the current market value through a new appraisal if prices have appreciated. This distinguishes conventional PMI from FHA's annual MIP, which continues for the life of the loan for borrowers who put down less than 10%.

Can I use gift funds for my down payment on a conventional loan in Georgia?

Yes. Gift funds from family members are accepted for conventional down payments on primary residences. The gift must be documented with a signed gift letter from the donor confirming the funds are a gift and not a loan. Investment property down payments generally cannot be funded with gift funds.

What is the difference between a conforming loan and a jumbo loan in Georgia?

A conforming loan stays within the FHFA conforming loan limit of $832,750 and meets Fannie Mae and Freddie Mac guidelines. A jumbo loan exceeds $832,750. Conforming loans typically carry lower rates and have more flexible qualification parameters because they can be sold to Fannie and Freddie. Jumbo loans are held on lender balance sheets, carry slightly higher rates, and have stricter credit and reserve requirements.

Can a self-employed person in Georgia get a conventional loan?

Yes. Self-employed Georgia buyers can qualify for conventional loans using two years of personal and business tax returns. Income is calculated from the tax-return net income figures. For self-employed borrowers whose tax returns significantly understate their actual income due to legitimate deductions, a NonQM bank statement loan typically produces much better qualifying income and is worth evaluating alongside conventional.

What is the HomeReady loan program and who qualifies in Georgia?

HomeReady is Fannie Mae's low-down-payment conventional program for first-time buyers and low-to-moderate income borrowers. It allows 3% down with income limits at 80% of area median income for the property's census tract (no income limit in underserved areas). It allows non-traditional income sources including boarder income and reduced-rate PMI. Completion of a homebuyer education course is required.

How long does a conventional loan take to close in Georgia?

Most Georgia conventional loan purchases close within 21 to 35 days of a complete application. Well-documented files with clean automated underwriting approvals frequently close toward the shorter end of that range. Files requiring manual underwriting, additional documentation requests, or complex income situations may run longer.

Why Truss Financial Group for Your Georgia Conventional Loan

Truss Financial Group originates conventional conforming and jumbo loans across the full Georgia market alongside our specialty NonQM programs. While our deepest expertise is in alternative documentation lending for self-employed borrowers and investors, we serve the full range of Georgia mortgage borrowers including those who qualify cleanly through conventional programs and want access to the broadest lender network and most competitive rates available.

As a mortgage broker, Truss submits conventional loan files to multiple competing Fannie Mae and Freddie Mac approved lenders simultaneously. This competitive submission process allows us to identify the best combination of rate, program, and lender service for each borrower's specific credit, income, and property profile rather than offering only a single institution's proprietary rate.

Founded by Jeff Miller, a 25-year mortgage industry veteran, Truss provides Georgia borrowers same-day pre-approvals, full conventional program access including HomeReady and Home Possible, competitive rate shopping across our lender network, expertise in both conventional and NonQM programs to identify the best path for each borrower's actual financial situation, and a closing team experienced in Georgia's attorney-based closing requirements across every market in the state.

NMLS #2006915, licensed to lend in Georgia.

Ready to Get Pre-Approved?

A conventional loan is the right choice for most Georgia buyers with solid credit, stable income, and at least a modest down payment. Truss Financial Group makes the process straightforward from pre-approval to closing.

Get a same-day pre-approval. See exactly what you qualify for.

Truss Financial Group | NMLS #2006915 | Licensed to lend in Georgia All loan approvals subject to underwriting and lender guidelines. Conventional loan terms, rates, and program availability subject to change. Loan amounts above $832,750 in Georgia require jumbo financing. PMI requirement and cost vary by credit score, LTV, and lender program.

Sources: JVM Lending: Georgia Conforming Loan Limits 2026 · The Mortgage Reports: Conventional Loan Requirements 2026 · SoFi: Conventional Loan Requirements 2026 · AD Mortgage: Conventional Loan Requirements 2026 · NerdWallet: Conventional Loan Requirements and Guidelines 2026 · LendingTree: Fannie Mae Guidelines 2026 · Bankrate: Georgia Mortgage and Refinance Rates April 2026 (30-year fixed 6.50%, 15-year 6.13%) · Texas United Mortgage: Conventional Loan Credit Score Update November 2025 (Fannie Mae DU score threshold removal) · My Mortgage Insider: Conventional Conforming Loan Guide 2026 · Georgia Association of Realtors 2025 Annual Housing Market Report