How much can I borrow with a conventional loan?

Your maximum loan-to-value depends on the property type per the Fannie Mae and Freddie Mac LTV matrices: up to 97% for a 1-unit primary residence, lower for additional units, second homes, and investment properties, and subject to conforming loan limits.

When do I have to pay PMI on a conventional loan?

Private mortgage insurance generally applies when your loan-to-value is above 80%. The estimated monthly cost rises as your down payment shrinks, and PMI can typically be removed once you reach 20% equity.

How much cash do I need to close?

Cash to close is roughly your down payment plus closing costs. This calculator shows three scenarios: without help, with a 3% seller credit, and with both a seller credit and down payment assistance.

Conventional · Home Purchase

Conventional Purchase Loan Payment Calculator

Estimate your monthly payment, PMI, cash needed to close, and the income you'd need to qualify — based on your property type, down payment, and rate.

Built by Jim Blackburn · NMLS #1072866 · $500M+ closed · 7× Scotsman Guide Top Producer

What type of home will this be?

Purchase Price

Down Payment Percentage 3%

Term of Loan

Annual Insurance

Annual Taxes

Monthly HOA

Estimated Interest Rate 6.99%

Are you thinking about buying another home after this one to continue your wealth journey?

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Summary

Total Monthly Housing Expense $3,969.46 Principal & interest, insurance, taxes, and PMI (PITI). HOA, if any, is paid separately.

Maximum Loan Amount (property type) $485,000 Per the Fannie Mae / Freddie Mac LTV matrix and conventional conforming loan limits.

Payment Breakdown

Desired Loan Amount$485,000

Principal & Interest Payment$3,223.46

Monthly Insurance$200.00

Monthly Taxes$416.67

Monthly PMI$129.33Estimated private mortgage insurance based on the down payment.

HOA Paid Separately$0

Cash to Close

Cash Out of Pocket — without seller credit or DPA$45,000Includes 6% estimated closing costs and varies state to state. This is NOT a Loan Estimate.

Cash Out of Pocket — with 3% seller credit$30,000Assumes a 3% seller credit toward closing costs and prepaids.

Cash Out of Pocket — with seller credit + DPA$15,000Assumes 3% down payment assistance + 3% seller credit. Note: many DPA programs require a refinance within 5 years.

Monthly Income Target to Qualify$7,938.92Fannie Mae allows up to 50% DTI; Freddie Mac up to 45% with strong credit and reserves.

See My Options

Estimates only — not a commitment to lend.

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Important Disclaimer

This calculator is for illustrative purposes only and does not constitute financial, legal, or investment advice. Results are based on general assumptions and may not reflect actual performance or eligibility. This is not a loan estimate or approval. Please consult with a licensed mortgage advisor before making financial decisions.

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Conventional Purchase Loan Payment Calculator

By Jim Blackburn

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