Are you a first-time home buyer looking to navigate the 2026 housing market? Conventional loans remain the most popular choice for buyers, but the rules have changed for the new year. In this video, we break down the 2026 Conventional Loan requirements to help you get mortgage-ready.
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â© NEW FHA Loan Requirements 2026 – https://youtu.be/aOfhgnHjiAo
What is a conventional loan? A conventional loan is a type of mortgage loan that is not insured or guaranteed by the government. Instead, the loan is backed by private lenders, and its insurance is usually paid by the borrower. Conventional loans are much more common than government-backed financing.
Loan limit for standard and high balance conforming:
1-Unit – $832,750 / $1,249,125
2-Units – $1,066,250 / $1,599,375
3-Units – $1,288,800 / $1,933,200
4-Units – $1,601,750 / $2,402,625
Check the loan limits in your area:
https://singlefamily.fanniemae.com/media/document/xlsx/loan-limit-look-table
Conventional Loan Requirements 2026:
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FICOÂź score – No Credit Score Required
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3% minimal down payment required
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MIP (Mortgage Insurance Premium ) is required when putting less than 20% down.
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Debt-to-Income Ratio less than 45%. (Actually you can go much higher than this)
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The home can be a primary residence, second home or investment property
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Borrower must have steady income and proof of employment.
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Assets may be required at closing.
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Jeb Smith (huntington beach Realtor/orange county real estate)
DRE 01407449
Real Broker
#housingmarket #firsttimehomebuyer #realestate
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31 Comments
@JebSmith · October 31, 2026 at 5:11 am
â Ready to become a homeowner? Start your stress-free journey today: http://www.jebsmith.net/start
â©NEW FHA Loan Requirements 2026 – https://youtu.be/aOfhgnHjiAo
@codycousins4222 · October 31, 2026 at 5:11 am
you cant get access land with FHA loan?
@KristinaCPA · October 31, 2026 at 5:11 am
I think saving 20% is important, but not necessarily making that your down payment. Be prepared for emergencies, layoffs, unexpected bills etc. just to be safe so you arenât scrambling for pennies.,
@tonyr3060 · October 31, 2026 at 5:11 am
I have fifty five k in equity can I use this down payment and my ss as a income to buy
@girlsvsboysandmore280 · October 31, 2026 at 5:11 am
The job market!
@Kitten_Chops · October 31, 2026 at 5:11 am
Down payment is a killer. Who has thousands laying around doing nothing? Nobody I know
@lrnasigo1 · October 31, 2026 at 5:11 am
Combination loans 80-10-10 sometimes work if the interest rate or closing cost makes sense against PMI
@ricardovargas7213 · October 31, 2026 at 5:11 am
Thanks for the info. Can I use my equity from my current house to buy a 2nd home?
@Hortonpapi · October 31, 2026 at 5:11 am
Very Helpful Thank you!
@BrianK-ME · October 31, 2026 at 5:11 am
I got a 850 Fico no debt but make only 52k, there's no way I can afford any homes unless they are under 80k
@YourSolventUncle · October 31, 2026 at 5:11 am
Tx for the breakdown, Jeb! Luv it. Gosh⊠hearing ânew conventional loan requirementsâ took me right back to the moment I realized conventional loans are like the strict older cousin of FHAâstill friendly, but they definitely want to see that youâve been drinking your financial water and minding your business. And 2026 is one of those years where lenders are tightening a few screws while loosening others, so you end up sitting there like, âHmmm⊠so yâall want higher credit, cleaner bank statements, and fewer financial plot twists, but youâre also giving better rates if I behave?â Once you see how the updated rules lean harder on credit score tiers, debtâtoâincome ratios, and documented income, it all starts making senseâyouâre basically proving youâre stable enough to handle a mortgage without breaking into a sweat. And the moment you realize you actually meet the new standards, you sit back like, âGosh⊠I really might be more ready for this than I thought.â
@Finechyna45 · October 31, 2026 at 5:11 am
What about if I have wâ2 and 1099? Iâm a nurse. Iâve been through this multiple times its very difficult so I gave up
@LuketheDuke-s4c · October 31, 2026 at 5:11 am
– [ ] Right now, weâre seeing home prices start to come down because of whatâs been going on with the economy. The government and Fed put a lot of extra money into the system and kept rates super low for years, which pushed home prices way up faster than wages. But now inflation forced rates up, making mortgages expensive and harder to get. At the same time, people are losing jobs or feeling less secure, so many canât afford to buy or keep their homes. More homes are on the market, but fewer buyers can qualify for loans. This imbalance is causing prices to correctâthat means theyâre coming back down to more affordable levels. This process isnât quick and could take months or even a few years, depending on how fast the economy recovers, how job markets hold up, and whether interest rates come down again. If home prices started correcting seriously in the last year or so, we might see a noticeable increase in foreclosures becoming visible in the market within the next several months to a year. However, the exact timing depends on factors like how long people can hold on, unemployment trends, and whether lenders offer forbearance or loan modifications. Itâs a slow reset, not a sudden crash, and it may take time before things feel normal again.
When owners price their homes much higher than what buyers are willing or able to pay, especially in a market with fewer qualified buyers, those homes donât sell. This leads to more inventory piling up, longer time on the market, and sellers eventually having to lower their prices to attract buyers. So, overpricing homes actually puts downward pressure on prices overall, because the market has to adjust to where real demand is. In short, unrealistic prices from sellers can prolong the correction and push prices even lower before the market balances out.
If your selling your home can you please over price your home by at least $100k POR FAVOR!!:)â€
@Rafael_iTV · October 31, 2026 at 5:11 am
All economic indicators are screeeeming " don't buy right now"!!!!!!!!!!
@grisseth · October 31, 2026 at 5:11 am
Can you make a video for customers with ITIN
@TheRealChadillac · October 31, 2026 at 5:11 am
Doing the lords work my friend. The lords force.
@breaknwseproductions · October 31, 2026 at 5:11 am
â€
@user-sw1gc6bd2q · October 31, 2026 at 5:11 am
I started with an fha loan…within a few years we refinanced and added ac to a california home..and refied the pmi out of the loan when we had enough equity.i made the home way more comfortable and got a lower payment..its a plan not instant gratification
@gadd8843 · October 31, 2026 at 5:11 am
This is a disaster. This will only cause higher defaults on loans overall, then those with good or better credit will wind up having to pay higher rates overall to make up for the losses. America is lost … Why can't you see what a mess this made in the car market, flooding the market with money through people with really bad credit, car prices skyrocket and loan defaults become unmanagable – nobody wins.
@NateS-d9o · October 31, 2026 at 5:11 am
How does it work when married? Are both incomes and debts included?? Canât find a single yt video about it
@THISISTRISH-d3j · October 31, 2026 at 5:11 am
Slow down with your speech focus on articulation… people who tell lie speak fast…or are you nervous
@rudyperez7680 · October 31, 2026 at 5:11 am
Awesome video! New sub now! Going to watch va video!!
@tonic316 · October 31, 2026 at 5:11 am
98 a month pmi. Worth doing 5% down. House I bought already got appraised at 20k more then I'm paying. So I'm 10% paper equity. đ
@lmar306 · October 31, 2026 at 5:11 am
The down payment is the hardest part. Paying rent on LI-NY and save for a down payment is a struggle
@denariusag · October 31, 2026 at 5:11 am
All the above đ
@leonapom3918 · October 31, 2026 at 5:11 am
Very educational video . Learned more on this video than any other . Now , can you talk about bank statement loan with refinancing?
@heatherh6408 · October 31, 2026 at 5:11 am
Down-payment and monthly payment those are the hardest
@heatherh6408 · October 31, 2026 at 5:11 am
No
@JorgeTheLoanGuy · October 31, 2026 at 5:11 am
Great Info!
@jaydeez83 · October 31, 2026 at 5:11 am
Dude it's a trap modern day slavery you act like this is all peaches and cream it ain't no American dream
@yvelinecole2001 · October 31, 2026 at 5:11 am
Big scam