Purchase Loan Products

Conventional Home Loans in Atlanta, Georgia

Conventional is not the 20 percent down mortgage most people think it is. It may work for first time buyers, move up buyers, self employed borrowers and investors, and it is usually the first program worth pricing.

This page is built to help you decide whether it fits your situation, not to talk you into it.

Based in Atlanta, serving buyers across Georgia
A business owner couple outside their Atlanta Metro home
Free Rate Quote

Get a Custom Conventional Rate Quote

If your first question is about pricing, start here. A rate quote and a mortgage application are two different things, and this is the quick look.

A rate quote is not a loan application, an approval, a rate lock or a commitment to lend. Pricing varies by credit profile, occupancy, property type, loan amount and other factors, and changes with the market.

  • What to expect: a short set of questions about the purchase, what you plan to finance and how you are paid.
  • What we will ask: whether the home is a primary residence, a second home or a rental, because occupancy moves pricing more than most buyers realize.
  • What you will see: current Conventional pricing built around your scenario. UHome is an independent mortgage brokerage, so we can compare pricing across wholesale lenders rather than presenting one lender's answer.
  • What we will not do: steer you into Conventional when FHA, VA or an alternative documentation program would serve you better.

Your Scenario, Priced Today

Every quote is built around your actual purchase rather than a sample rate typed onto a web page.

Get My Free Rate Quote
  • No impact to your credit score
  • No hidden cost
  • No commitment

Prefer to talk it through first? Talk With A Loan Expert or call 404.919.5533.

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Could a Conventional Loan Work for You?

Conventional financing covers more situations than most buyers expect. Find the line below that sounds like you.

Reviewed by Coby Pegues, NMLS #2556341. Last reviewed [CMS REVIEW DATE].

Your situationWhat to know
Buying your primary homeYou may need as little as 3 to 5 percent down, depending on your profile.Example
Buying a rental propertyConventional can finance eligible investment properties. FHA and VA cannot.
Self employed or 1099You may still qualify using your tax returns, without a bank statement loan.
Buying a second homeConventional allows eligible second homes, generally with 10 percent down.Example
Stronger credit profileConventional may compare favorably with FHA, particularly on mortgage insurance.
Buying above FHA's Atlanta limitConventional gives you more room before the loan becomes a Jumbo.

Not sure which one sounds like you?

Jump straight to the part of this page written for your situation.

The Short Version

The Numbers Most Buyers Want to Know

Five figures answer most of what people come to this page for. Everything else is further down, and you only need it if you want it.

3%Minimum down for certain eligible buyers, including eligible first time buyersExample
5%Common minimum for many other buyers on a primary residenceExample
$832,7502026 Georgia one unit conforming limit, the same in every county
15%Potential minimum for an eligible one unit investment propertyExample
20%Equity level generally associated with avoiding mortgage insuranceExample
See all Conventional loan limits and guidelines

Figures reference current Fannie Mae, Freddie Mac and FHFA requirements as of the review date and are stated as program maximums or general requirements rather than as terms offered to any borrower. Loan limits reset annually. Nothing here is an offer to lend, a rate quote or a determination of eligibility. See the representative example in the disclosures.

The Honest Answer

When Conventional Is Better, and When It Isn't

We would rather point you to the right program than keep you on the page you happened to land on. Here is the short version of both sides.

Conventional deserves a strong look when

  • Your documented income supports the mortgage payment.
  • Your credit profile is solid, or at least steady.
  • You want mortgage insurance that can eventually come off.
  • You are buying a rental property or a second home.
  • Your loan amount is below the conforming limit.
  • You want published, predictable guidelines that do not change from lender to lender.

Another loan may deserve the first look when

  • FHA Your credit is rebuilding, or available cash is limited.
  • VA You are an eligible veteran or service member. Compare VA first.
  • DSCR The investment property's cash flow needs to qualify the deal instead of your personal income.
  • Bank Statement Your tax returns do not reflect your real business cash flow.
  • Jumbo Your loan amount is above the conforming limit.
  • Investor or entity You are purchasing in an LLC. Conventional loans close in an individual's name.

Educational only. This is not a statement that Conventional financing is better or worse than any other program, and it is not a determination of what you qualify for. The tradeoffs behind each of these are covered in the reference section further down.

Your Path

What Kind of Buyer Are You?

The rest of the decision depends on your situation. Read the one that fits you and skip the rest.

Path 1

First Time or Primary Home Buyer

The version of this page most buyers need. What you put down, what mortgage insurance costs you, and whether FHA would treat you better.

See What I Qualify For
  • You almost certainly do not need 20 percentEligible first time buyers may put down as little as 3 percent, income eligible buyers may reach the same figure through HomeReady or Home Possible, and 5 percent is the common floor for other buyers on a primary residence.Example
  • What mortgage insurance actually costs youBelow 20 percent equity, private mortgage insurance applies. The important part is that on a primary residence it can be cancelled once the requirements are met, so it is a temporary cost rather than a permanent one.
  • There is no single credit score cutoffA 620 minimum applies to manually underwritten loans, but most files run through automated underwriting, which weighs your credit history alongside income, debts and available funds rather than applying a fixed floor.
  • When FHA is the better answerIf your credit is still rebuilding or your available cash is tight, FHA may reach you when a Conventional file will not. That is worth pricing side by side rather than assuming.
  • The Atlanta detail worth knowingIn metro Atlanta the FHA limit for a one unit home is lower than the conforming limit, so there is a price band where Conventional works and FHA does not. More on that in the Atlanta section below.
Path 2

Self Employed or 1099

Before assuming self employment requires a bank statement or other non-QM mortgage, find out what your tax returns actually support. Some self employed Atlanta borrowers may not need one at all.

That is not a promise and it is not true for everyone. Because UHome brokers both Conventional and alternative documentation programs, we have no reason to push you toward one over the other.

See What I Qualify For
  • How your income is calculatedUnderwriting analyzes your personal and business tax returns using a cash flow analysis, then typically averages the documented period. That result, not your revenue, is your qualifying income.
  • Why gross revenue is not qualifying incomeWhat the business collects and what you qualify with are different numbers. Qualifying income starts from net income after business expenses.
  • Why write offs reduce itEvery deduction that lowers taxable income also lowers the income available to support a mortgage payment. This is the single most common reason a strong business owner is told no.
  • Why certain adjustments may raise it againSome non cash and non recurring items may be added back. Depreciation is the clearest example, because it reduces taxable income without money leaving the business.
  • Why two years usually mattersUnderwriting generally looks for a two year self employment history to establish that the income is likely to continue. A shorter history can work in limited circumstances.
  • When alternative documentation fits betterIf the returns genuinely do not reflect the business, a bank statement loan or another self employed program may suit you better. We price both before recommending either.

A worked example: why a $420,000 business can qualify like a $120,000 one

An educational illustration using clean figures. Not an actual borrower and not a promise of qualification. Every adjustment shown is a category that could legitimately be considered under current agency cash flow analysis, but what applies to any specific file depends on the complete tax returns and underwriting requirements.

Gross business receipts for the year$420,000
Net profit reported on the tax return$96,000
Add back depreciation, a non cash expense$18,000
Add back business use of the home$4,800
Add back amortization and one time casualty loss$1,200
Adjusted annual qualifying income$120,000
Monthly qualifying income$10,000

Two things are worth sitting with. The borrower did not qualify on $420,000, and no lender was ever going to treat gross receipts as income. But the borrower also did not qualify on $96,000, because the add backs recovered $24,000 the tax return had removed without cash leaving the business. The number that matters is the one in the middle, and it is usually not the number the borrower expected. If this borrower had taken another $30,000 in deductions that could not be added back, monthly qualifying income would fall by $2,500, which on most files is the difference between two very different homes.

This is also why timing matters. A tax strategy that minimizes what you owe and a mortgage strategy that maximizes what you qualify for pull in opposite directions. The time to reconcile them is before you file, not during the loan.

Path 3

Buying an Investment Property

Conventional is one of the few mainstream loan types that follows you past your primary residence. For eligible borrowers that opens a door FHA and VA do not.

See What I Qualify For
  • What you may need downA one unit rental is generally available up to 85 percent of value for eligible borrowers, so 15 percent down. Two to four unit investment properties are generally available up to 75 percent, so 25 percent down. Both are program maximums rather than offers.Example
  • Whether rent helps you qualifyIt may. Rental income is documented through a lease that transfers to you or the appraiser's market rent analysis, and only a portion of gross rent counts because vacancy and maintenance are accounted for.
  • The part first time investors missWithout a documented history of receiving rental income, rent may only offset that property's own housing payment rather than add to your qualifying income. This is where most first rental purchases get harder than expected.
  • Reserves are part of the dealCash reserves beyond your down payment and closing funds are commonly required on investment purchases, and the requirement grows as you finance more properties.
  • Mortgage insurance works differently hereCancellation on an investment property follows a stricter framework than on a home you live in. The details are in the reference section below.
  • You cannot buy in an LLCConventional financing closes in an individual's name. If holding the property in an entity matters to your strategy, that is a different product family.

I am buying my first Atlanta rental. Should I use Conventional or DSCR?

Not automatically DSCR. That is worth saying plainly, because most content on this question is written by companies that only offer one of the two. The right choice depends on whether your personal income can carry the loan.

The deciding question Conventional first when DSCR worth considering when
Personal incomeYour documented personal qualifying income supports the loan.Your tax returns do not support the financing you want.
Debt to incomeYour ratio remains within the applicable approval framework.Personal debt to income has become the constraint.
Down payment and reservesYou have the required down payment and reserves for an agency loan.You would rather structure the transaction around the property.
Qualification basisYou want agency financing and potentially more favorable pricing.You want qualification based primarily on property cash flow.
Portfolio stageYou are buying your first or second investment property.Portfolio growth is making personal income qualification increasingly difficult.

A decision framework rather than a pricing claim. We do not claim Conventional is always cheaper, because pricing depends on the complete scenario and market conditions. Our advantage is that we can compare both instead of selling one. When DSCR becomes the better conversation, our DSCR investor loan page covers it in full.

Path 4

Second Home or Move Up Buyer

Whether you are buying a place at the lake or trading up in the metro, the questions are about equity, occupancy and whether you keep what you already own.

See What I Qualify For
  • Second homes are eligible, with rulesFinancing is generally available up to 90 percent of value for eligible borrowers, so 10 percent down.Example It must be a one unit home suitable for year round occupancy that you control and occupy for some portion of the year.
  • A home you never occupy is a rentalOccupancy is determined by how the property is actually used, not by what it is called. That distinction changes the down payment, the pricing and the mortgage insurance treatment.
  • Your equity can fund the next purchaseProceeds from the sale of your current home may be available for down payment and closing funds when properly documented and available at closing.
  • You can keep the old houseConventional is comfortable with a borrower who owns more than one financed property. The questions are whether you can carry both payments on paper, what documentation is needed for rental income on the departing residence, and whether you have the reserves.
  • The Georgia detail most people missIf you convert your current Atlanta home into a rental, the property tax picture on that house may change once it is no longer your homestead. That affects the housing expense used for the property. More in the Atlanta section below.
  • If you would rather not sellPulling equity instead of selling is a separate conversation. A home equity line of credit may fit that plan better.
Compare Your Options

How Conventional Compares

Neither Conventional nor FHA is universally cheaper or better. Here is the short version of each comparison, with the full detail available if you want it.

Conventional or FHA?

Choose Conventional when

Your credit is solid, you want mortgage insurance that can be cancelled, or you are buying a second home or rental. FHA cannot do the last one at all.

Choose FHA when

Your credit is rebuilding or your cash is limited. FHA's published score tiers reach buyers a Conventional file may not.

Conventional or VA?

Choose Conventional when

You do not have VA eligibility, or you are buying a property VA does not cover, such as an investment property.

Choose VA when

You are eligible. Zero down payment and no monthly mortgage insurance usually make VA the first thing to price.

Conventional or DSCR?

Choose Conventional when

Your personal income and debt to income ratio support the property. Agency financing is often the more economical route when it fits.

Choose DSCR when

The property's cash flow needs to carry the qualification, or your personal ratio has become the ceiling on the next purchase.

Conventional or Jumbo?

Choose Conventional when

Your loan amount is at or below $832,750 on a one unit Georgia home. Guidelines are published and consistent across lenders.

Choose Jumbo when

You are above that figure. The dividing line here is primarily loan size rather than borrower profile.

See the full side by side comparison across all five programs
Decision point Conventional FHA VA Jumbo DSCR
Best suited for Self employed borrowers whose returns support them, investors, and buyers with a solid credit profile. Buyers with a limited or rebuilding credit profile, or less available cash. Eligible veterans, active duty service members and qualifying surviving spouses. Buyers whose loan amount exceeds the county conforming limit. Investors who want qualification based on the property rather than personal income.
Occupancy Primary residence, second home and investment property. Owner occupied principal residence only. Not open to investors. Owner occupied. The borrower must live in the home. Varies by program. Primary, second home and in some cases investment. Investment property. Business purpose rather than owner occupied.
Down payment As low as 3 percent for certain eligible buyers, commonly 5 percent for others on a primary residence. 10 percent second home. 15 percent one unit rental, 25 percent on two to four units.Example The lowest minimum down payment of the programs compared here, with published credit score tiers. See our FHA loan page for current figures and examples. No down payment required when the sales price does not exceed the appraised value. Set by the individual program rather than by agency guidelines. Set by the individual program, and generally larger than an owner occupied down payment.
Credit considerations 620 minimum on manually underwritten loans. Automated underwriting sets no fixed cutoff and weighs the whole profile. Published tiers at 580 and 500, which is what makes FHA more accommodating of a rebuilding profile. No VA minimum score. Lenders set their own overlays. Program specific, evaluated alongside reserves and documentation. Program specific, and typically weighed alongside the property's cash flow.
Income documentation Full documentation. Personal and business returns for the self employed, W2s and paystubs for wage earners. Full documentation. Full documentation. Most often full documentation, though some programs offer alternatives. No personal income documentation. The analysis is property focused.
Mortgage insurance No required upfront premium. PMI applies below 20 percent equity and can be cancelled on a primary residence or one unit second home once requirements are met. An upfront premium on essentially every loan, plus an annual premium lasting 11 years or the life of the loan depending on loan to value at origination. None monthly. A one time funding fee applies unless the borrower is exempt. No agency structure. Requirements are program specific. No agency structure. Requirements are program specific.
Rental eligibility Yes. Rental income may be considered subject to guidelines and your history of receiving it. No. FHA is owner occupied financing. No. VA is owner occupied financing. Program dependent. Yes. The property's cash flow is the qualification.
Loan size in Georgia Up to $832,750 on a one unit home for 2026, the same in every Georgia county. Up to $718,750 on a one unit home in metro Atlanta for 2026, lower than the conforming limit. No loan limit for eligible borrowers with full entitlement. Above $832,750 on a one unit Georgia home. Set by the individual program rather than by agency limits.
Reserves Commonly required on second home and investment purchases, and increasing as you finance more properties. Generally lighter on an owner occupied purchase. Generally lighter on an owner occupied purchase. Typically more substantial, and program specific. Typically required, and program specific.
Property considerations Standard property types, one to four units, with agency appraisal requirements. FHA appraisal and minimum property requirements. One to four units, owner occupying one. VA appraisal and minimum property requirements apply. Generally suited to properties with comparable sales nearby. Evaluated primarily as an income producing asset.
Primary advantage Flexibility across occupancy types, plus mortgage insurance that can end. Accessibility. It reaches buyers a Conventional file may not. The strongest terms available to those who have earned eligibility. Access to financing above the conforming limit. Personal debt to income stops being the ceiling.
Potential tradeoff Qualifying income comes from tax returns, which penalizes aggressive write offs. Mortgage insurance that often lasts the life of the loan, and no path to a rental. The funding fee, and eligibility that not everyone has. Less standardized guidelines that vary by lender. Pricing and terms reflect the alternative qualification method.
When another option may fit better When your returns understate your income, or personal debt to income caps your next rental. When you have the credit and cash to avoid a permanent insurance premium. When you do not have VA eligibility. When the purchase fits under the county limit. When your personal income comfortably supports the loan and agency pricing is better.

General and educational. Figures reflect 2026 FHFA conforming loan limits, 2026 HUD FHA limits for the Atlanta-Sandy Springs-Roswell, GA metro area, and current Fannie Mae, HUD and VA requirements as of the review date. Down payment and loan to value figures are program maximums, not offers. Guidelines vary by lender, change over time and are subject to underwriting. Nothing here is an offer to lend or a determination of eligibility.

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The Requirements

How Do I Actually Qualify?

Eight things decide a Conventional file. None of them is a single pass or fail number, and underwriting looks at them together rather than one at a time.

Income

Documented and likely to continue. How it is verified depends on how you are paid, which is why the self employed path above exists.

Credit

620 minimum on manually underwritten loans. Automated underwriting sets no fixed floor but weighs credit heavily.

Debt to income

Your total monthly obligations measured against qualifying income. For investors this is usually the real ceiling.

Assets

Funds to close, sourced and documented. Gifts are allowed with proper documentation.

Down payment

From 3 percent on an eligible primary residence up to 25 percent on a two to four unit investment property.

Reserves

Months of housing payments held after closing. Commonly required on second homes and rentals, and growing with each financed property.

Property

One to four units, standard property types, subject to agency appraisal requirements.

Occupancy

Primary residence, second home or investment. This single answer changes down payment, pricing, reserves and mortgage insurance.

These are general requirements rather than a determination of eligibility. Underwriting evaluates the complete file, and automated underwriting findings drive much of what is ultimately required. Detailed guidelines for each of these are in the reference section below.

What Happens Next

What Happens After You Decide to Move Forward

Six steps from first conversation to funding. For self employed and investor buyers the real work happens in the first two, which is why we would rather talk before you are under contract.

Discuss your goals

What you are buying and whether you will live in it. Occupancy shapes the down payment, the pricing and the reserves, so we settle it first.

Review how your income reads

For business owners this step decides everything. We look at what your returns actually show and tell you plainly whether Conventional works or another program fits better.

Get preapproved

We verify income, assets and credit, run the file through automated underwriting and issue a preapproval you can make an offer with. Investors get their reserve picture here too.

Go under contract and lock

Once you have an accepted contract we review your loan options, talk through fixed versus adjustable and discuss when locking your rate makes sense.

Appraisal and underwriting

The property is appraised while underwriting reviews your file. On a rental the appraiser also completes a market rent analysis. Answering requests quickly is the biggest thing you control.

Clear to close and fund

You receive your Closing Disclosure, review the final terms and sign. We go through those numbers with you rather than emailing them and hoping.

Talk With A Loan Expert

A general description of the process. Timelines and requirements vary by file, and completing these steps is not a guarantee of approval or closing.

See How This Works

Real Atlanta Borrower Scenarios

Educational examples built to help you recognize your own situation. They are not promises, and another borrower with similar facts could reach a different outcome.

01

The Marietta business owner whose returns do not match the bank account

The situationA contractor has run a profitable business for six years. Deposits are strong, but after equipment purchases and other deductions the net income on his returns is a fraction of what the business brings in. He has been told twice that he does not make enough, and both times he was pointed at a bank statement loan.

Why Conventional may be consideredHe has the two year self employment history Conventional generally looks for, and he would qualify on net income from his personal and business returns analyzed through a cash flow analysis. Depreciation and certain other items may be added back, so the qualifying figure is not always the bottom line on the return.

What still needs reviewWhether those add backs support the payment he wants, how his two most recent years compare, and whether the business shows the stability underwriting looks for.

When another program could fit betterIf the returns still fall short, a bank statement loan may reflect his cash flow more accurately. The point is that nobody had checked the Conventional option first.

02

The DeKalb County buyer purchasing a first rental property

The situationA W2 professional owns her home and wants to buy a single family rental in the metro area. She has been saving, and assumed the projected rent would cover most of the qualifying math.

Why Conventional may be consideredConventional can be used for investment property, which FHA cannot. On a one unit rental, financing is available up to 85 percent of value for eligible borrowers, meaning 15 percent down, and documented rental income may be considered within program rules.

What still needs reviewHere is where the assumption gets tested. Without a documented history of receiving rental income, projected rent may only offset that property's housing payment rather than increase her qualifying income. She also needs reserves beyond her down payment and closing funds, and she should understand that mortgage insurance on a rental follows a stricter cancellation framework.

When another program could fit betterIf her personal debt to income ratio becomes the ceiling, a DSCR loan that qualifies on the property's cash flow may take her further, especially if this is the first of several purchases.

03

The Cobb County couple moving up and keeping the old house

The situationA couple has owned their home eleven years and has real equity. They want a larger house closer to work, and they are weighing whether to keep the current home as a rental instead of selling.

Why Conventional may be consideredIt handles both sides of this. Their equity, once documented and available at closing, can fund the down payment on the new home, and Conventional is comfortable with a borrower who owns more than one financed property.

What still needs reviewWhether they can carry both payments on paper, what is needed to document rental income on the departing residence, whether they have the reserves the file requires, and how the property tax picture on the old house may change once it is no longer their homestead.

When another program could fit betterIf keeping the old home makes the new purchase too tight, selling first and using the proceeds is cleaner. If they would rather pull equity than sell, a home equity line of credit is a separate conversation worth having.

Scenarios are illustrative and educational. They do not represent actual borrowers, are not offers, and do not guarantee that a borrower with similar circumstances would qualify or receive the same result. All loans are subject to underwriting and credit approval.

Local Guidance

Atlanta Specific Things Worth Knowing

Three local facts that change decisions for Georgia buyers more often than anything else on this page.

$718,750 FHA vs $832,750 Conventional

Conventional reaches higher than FHA here

For 2026 the FHA limit for a one unit home in the Atlanta metro area is $718,750, while the Georgia conforming limit is $832,750. That is a band of roughly $114,000 where a Conventional loan is available and FHA is not, without becoming a Jumbo. In the upper end of Sandy Springs, Alpharetta, Milton, Decatur or intown Atlanta, that gap can decide which program you are actually choosing between.

Buying Atlanta investment property

Metro Atlanta has one of the more active single family rental markets in the Southeast, and Conventional is usually where local investors start, because the guidelines are published and the pricing is competitive. The practical ceiling is not the loan limit. It is your debt to income ratio and your reserves, both of which tighten as you add properties. Investors buying in Clayton, Douglas, Henry and south Fulton often hit that ceiling well before the agency property limit.

Keeping your Atlanta home as a rental

If you are moving up and converting your current home into a rental, the property tax picture on that house may change once it is no longer your homestead. Georgia homestead exemptions, and the assessment treatment that can come with them, generally apply to a property the owner occupies as a primary residence. That matters for your loan because the housing expense used for the property includes taxes and insurance.

More Georgia and Atlanta detail

Every Georgia county sits at the baseline conforming limit

For 2026 the conforming loan limit for a one unit home is $832,750, and no Georgia county carries a high cost designation. The number is the same in Fulton County as it is in Paulding County, so the Jumbo threshold statewide is a single clean figure. Multi unit limits step up from there: $1,066,250 for two units, $1,288,800 for three and $1,601,750 for four, which matters if you are buying a duplex or a fourplex in an intown neighborhood.

  • Fulton
  • DeKalb
  • Cobb
  • Gwinnett
  • Clayton
  • Douglas
  • Paulding
  • Henry
  • Cherokee
  • Forsyth

The FHA gap is wider than the usual comparison suggests

Most coverage of this stops at a one unit primary residence in the metro area. Three extensions matter more for the buyers this page is built for.

Outside the Atlanta metro area, the gap is much larger. The FHA floor applies in Georgia counties outside a designated metropolitan area, and it sits well below both the metro FHA limit and the statewide conforming limit. A buyer in a rural or exurban Georgia county can face a substantially wider band where Conventional financing remains available and FHA does not.

For two to four unit buyers, the comparison changes shape. Conventional multi unit limits rise steeply, to $1,601,750 on a fourplex in Georgia. FHA also publishes multi unit limits for the metro area, and the practical question for an Atlanta house hacker is whether the property they want sits inside or outside each program's reach. Worth noting alongside it: a two to four unit property you live in follows the stricter 70 percent mortgage insurance cancellation framework rather than the one unit rule.

For self employed buyers, the band is where the bad advice happens. Buyers shopping between roughly $718,750 and $832,750 in metro Atlanta are frequently told they need a Jumbo or a non-QM loan. Sometimes that is right. Often the purchase still fits inside conforming limits and the real question was never the loan amount, it was how the income was documented.

Developer verification gate 12 The one unit Atlanta metro FHA limit and all Georgia conforming figures on this page are verified. Specific FHA two to four unit metro figures and the current Georgia FHA floor figure are NOT stated numerically because they were not verified at build time. Verify against current HUD loan limit data before publishing those numbers.

Self employed buyers and the Georgia small business picture

Georgia has a deep base of small businesses and independent contractors, and metro Atlanta's construction, logistics, healthcare and creative sectors produce a lot of buyers whose income is real but complicated. If that is you, the most useful thing you can do is talk to us before you file your next return. The worked example in the self employed path exists because most lenders will tell you write offs reduce your income without ever showing you the arithmetic.

Converting a homesteaded Atlanta property into a rental

When occupancy changes, a homestead exemption and any related assessment treatment may no longer apply, and the tax figure used for that property's housing expense may change. It is better to plan around the new number than to be surprised by it after closing. This is a planning consideration rather than a rule, and the specifics depend on your county and your circumstances.

Developer verification gate 11 Before publication, verify current Georgia and local homestead exemption mechanics, including the floating homestead exemption and which metro Atlanta jurisdictions opted out, since treatment is not uniform across the metro. Do not state that every Atlanta jurisdiction handles the exemption identically. Keep the mortgage consequence phrased as a planning consideration rather than an underwriting rule. If confidence is insufficient at review time, reduce this to the verified tax mechanics only.
See What I Qualify For Talk With A Loan Expert
Reference

Conventional Loan Details and Guidelines

The complete detail behind everything above. Open whatever you need.

Mortgage insurance rules and when PMI comes off

Private mortgage insurance generally applies when you have less than 20 percent equity. The useful question is not whether you will pay it, but whether it can end. On a Conventional loan the answer depends heavily on how the property is occupied, and that distinction is widely misstated online.

Property type Borrower requested cancellation Automatic termination
One unit primary residence Generally at 80 percent of original value. Cancellation based on current value may also be available with sufficient seasoning. Generally when the balance is first scheduled to reach 78 percent of original value, and otherwise at the midpoint of the amortization period.
One unit second home Treated the same as a one unit primary residence, generally at 80 percent of original value. Treated the same as a one unit primary residence, generally at the 78 percent point.
Investment property, and two to four unit property Generally at 70 percent of original value, a materially stricter threshold. Cancellation based on current value generally also uses 70 percent, with seasoning requirements. The 78 percent automatic termination does not apply the same way. Termination generally reaches the midpoint of the amortization period if it has not otherwise been cancelled.

Cancellation in every case is also subject to an acceptable payment history, the absence of certain junior liens, evidence that the property value has not declined, and the servicer's requirements. Verified against Fannie Mae Servicing Guide B-8.1-04. Servicing requirements can differ by investor and can change, so confirm the treatment that applies to your specific loan with your servicer.

Can PMI be removed from a Conventional investment property loan?

It may be, but not on the schedule most investors expect. Borrower requested cancellation on a one to four unit investment property, or on a two to four unit principal residence, is generally based on reaching 70 percent of the original value rather than the 80 percent figure that applies to a one unit primary residence or second home. The 78 percent automatic termination that most articles describe does not apply the same way. Instead, termination generally reaches the midpoint of the loan's amortization period if the insurance has not already been cancelled.

The practical consequence: if you are buying an Atlanta rental with 15 percent down and assuming the insurance falls away at 78 percent like it would on your house, plan again. And if you are house hacking a duplex you live in, the two to four unit rule applies to you even though it is your primary residence.

The federal Homeowners Protection Act establishes cancellation and termination rights for a borrower's principal residence. The thresholds described above reflect current Fannie Mae servicing requirements, which is what governs most Conventional loans in practice. This is educational information rather than servicing advice for your specific loan.

Investment property guidelines

Conventional financing can be used for investment property by eligible borrowers, including a first rental. FHA and VA cannot, which is the clearest structural difference between them.

  • One unit rental. Generally available up to 85 percent of value, so 15 percent down.Example
  • Two to four unit investment property. Generally available up to 75 percent of value, so 25 percent down, under current agency guidelines.
  • Duplex, triplex and fourplex purchases are all possible under Conventional financing, subject to the applicable unit count limits and appraisal requirements.
  • Pricing adjustments apply to investment property that do not apply to a primary residence.
  • Reserves beyond down payment and closing funds are commonly required, and the requirement grows as you finance more properties.
  • Entity purchases are not eligible. Conventional loans close in an individual's name, so a purchase held in an LLC needs a different product family.

All figures above are program maximums rather than terms offered to any borrower, and are subject to underwriting and automated underwriting findings.

Second home requirements

Second home financing is available to eligible borrowers, generally up to 90 percent of value, so 10 percent down.Example

  • The property must be a one unit home suitable for year round occupancy.
  • You must occupy it for some portion of the year and maintain control of it.
  • A property you never occupy is treated as an investment property regardless of what it is called, which changes down payment, pricing and mortgage insurance treatment.
  • Reserve requirements and pricing differ from a primary residence.
  • For mortgage insurance purposes, a one unit second home is treated the same as a one unit primary residence.
Loan limits in Georgia

For 2026 the conforming loan limit is $832,750 for a one unit home. Every Georgia county sits at that baseline because no county in the state carries a high cost designation. Above the applicable limit, a loan becomes a Jumbo and follows different guidelines.

  • One unit: $832,750
  • Two units: $1,066,250
  • Three units: $1,288,800
  • Four units: $1,601,750

For comparison, the 2026 FHA limit for a one unit home in the Atlanta-Sandy Springs-Roswell metro area is $718,750, which is lower than the conforming limit. Loan limits are set annually by the Federal Housing Finance Agency and reset each year.

How rental income is treated

Rental income may be considered in qualifying, subject to agency guidelines and your history of receiving it.

  • Documentation. Through a lease that transfers to you at closing, or through the appraiser's market rent analysis. On an existing rental, Schedule E from your tax returns is used.
  • Only a portion counts. When market rent or lease income is used, only a portion of gross rent is counted, because vacancy and maintenance are accounted for.
  • The limitation that surprises people. Without a documented history of receiving rental income, rent may only be used to offset that property's own housing payment rather than add to your qualifying income.
  • Departing residence. If you are keeping your current home as a rental, separate documentation applies, and the property tax picture may change once it is no longer your homestead.
Self employed documentation and income analysis

Conventional financing generally looks for a two year self employment history, and qualifies you on net income from your personal and business tax returns rather than on revenue or deposits.

  • The analysis. Underwriting uses a cash flow analysis of the returns, then typically averages the documented period.
  • Add backs. Certain non cash and non recurring items may be added back, with depreciation the clearest example.
  • Write offs. Deductions that lower taxable income also lower qualifying income. This is the most common obstacle for business owners.
  • Shorter history. A one year history can work in limited circumstances, but it is the exception rather than the rule.
  • Declining income. If the most recent year is meaningfully lower than the prior year, underwriting looks harder at why and may use the lower figure rather than the average.
  • Business stability. The review considers whether the business is active, how long it has operated and whether the income pattern is consistent enough to rely on.
  • 1099 earners. May qualify depending on how the income is documented and calculated. The documentation path matters more than the label on the income.

See the worked example in the self employed path above for the actual arithmetic.

Multiple financed properties

Agency guidelines allow eligible borrowers up to ten financed properties when the new loan is on a second home or investment property. The count is of properties rather than mortgages, and it counts all borrowers on the loan.

The practical limit usually arrives before the guideline limit does. Reserve requirements increase as you finance more properties, and your personal debt to income ratio absorbs each new payment. For most Atlanta investors, that combination becomes the real ceiling well before ten properties, and it is typically the point where property based financing enters the conversation.

Documents you may need

A first conversation can happen before you have gathered anything. When you are ready to move forward, these are the items borrowers commonly prepare. Not every borrower needs every item.

Identity and the transaction

Everyone

  • Government issued photo identification
  • Authorization to review credit
  • Executed purchase contract, once under contract
  • Contact information for your agent and closing attorney

Assets and funds to close

Everyone

  • Recent bank and investment account statements
  • Documentation of the source of your down payment funds
  • Gift letter and documentation, if any funds are gifted
  • Documentation of reserves where they are required

If you are self employed

Business owners and partners

  • Personal federal tax returns with all schedules
  • Business returns and K-1s where you hold an ownership interest
  • Year to date profit and loss statement
  • Business license or verification the business is active

If you are a 1099 earner

Contractors and commission earners

  • 1099s for the documented period
  • Personal federal tax returns with all schedules
  • Documentation of business expenses claimed
  • Evidence the earnings are likely to continue

If you receive a W2

Wage and salary earners

  • Recent paystubs
  • W2s for the most recent years
  • Documentation of bonus or commission income

If you are buying a rental

Investment property buyers

  • Any signed lease that transfers with the property
  • Schedule E, if you already own rentals
  • Documentation of reserves beyond funds to close
  • Note that the market rent analysis is completed by the appraiser

If you are buying a second home

Second home buyers

  • Documentation of reserves
  • Information about intended use and occupancy
  • HOA information where an association applies

If you already own real estate

Investors and move up buyers

  • Mortgage statements for properties you own
  • Property tax and homeowners insurance records
  • HOA statements where applicable
  • Listing agreement or contract, if selling

If you are keeping your home as a rental

Departing residence conversions

  • Executed lease on the departing residence where one exists
  • Evidence of the security deposit, where applicable
  • Current mortgage statement and escrow detail
  • Updated property tax expectations after the occupancy change

A general guide rather than a program requirement. What is actually requested depends on your profile, the property and the underwriting findings, and may include items not listed here.

Anything Else

Conventional Loan Questions, Answered Plainly

No. The idea that Conventional means 20 percent down is the most persistent myth in the business. Eligible first time buyers may put down as little as 3 percent, income eligible buyers may reach the same figure through HomeReady or Home Possible without being first time buyers, and 5 percent is the common floor for other buyers on a primary residence. Putting down less than 20 percent means private mortgage insurance applies, but on a primary residence that insurance can eventually come off. See the representative examples below.

Not automatically. Many self employed borrowers are pointed straight at bank statement or other non-QM programs without anyone checking whether a Conventional loan would work first. Conventional financing generally looks for a two year self employment history and qualifies you on net income from your personal and business tax returns, analyzed through a cash flow analysis in which certain non cash items such as depreciation may be added back. If that adjusted income supports the payment, Conventional is usually the stronger option. If it does not, a bank statement or 1099 program may genuinely fit better. The point is to find out rather than assume.

Directly, and more than most business owners expect. Qualifying income starts from the net income on your returns rather than from gross receipts or deposits, so every deduction that lowers taxable income also lowers the income available to support a mortgage payment. Some items may be added back because they did not represent cash leaving the business, with depreciation the clearest example. The worked example in the self employed path shows the actual arithmetic on a business with $420,000 in receipts and $96,000 in net profit.

There is not one universal cutoff. A 620 minimum representative credit score applies to manually underwritten loans, but most Conventional files run through automated underwriting, which does not set a fixed score floor and instead weighs your credit history alongside income, debts and available funds. In practice a stronger credit profile improves both eligibility and pricing. If your credit is still rebuilding, FHA is worth comparing side by side rather than assuming Conventional is out.

Yes, and this is one of the clearest differences from FHA, which is limited to owner occupants. Eligible borrowers may finance a one unit investment property up to 85 percent of value, meaning 15 percent down, and a two to four unit investment property up to 75 percent of value, meaning 25 percent down. Those are program maximums rather than what every borrower receives. Investment purchases also carry pricing adjustments and reserve requirements that a primary residence does not. See the representative examples below.

Sometimes, but less than most first time investors expect. Rental income is documented through a lease that transfers to you or the appraiser's market rent analysis, and only a portion of the gross rent counts, because vacancy and maintenance are accounted for. The bigger limitation: without a documented history of receiving rental income, rent may only offset that property's own housing payment rather than add to your qualifying income. If the rent needs to carry the deal, a DSCR loan is usually the better tool.

It may be, but the framework is stricter than the one most articles describe. Borrower requested cancellation on a one to four unit investment property, or on a two to four unit principal residence, is generally based on reaching 70 percent of the original value rather than the 80 percent figure that applies to a one unit primary residence or second home. The 78 percent automatic termination that applies to a one unit primary residence or second home does not apply the same way to those properties. Termination generally reaches the midpoint of the loan's amortization period if the insurance has not already been cancelled. Cancellation is also subject to payment history and other servicer requirements.

Yes, and a one unit second home is generally treated the same way as a one unit primary residence. Borrower requested cancellation is generally available at 80 percent of original value, and automatic termination generally applies when the balance is first scheduled to reach 78 percent. It is investment properties and two to four unit properties that follow the stricter 70 percent framework, not second homes.

Three practical differences. Mortgage insurance: FHA charges an upfront premium on essentially every loan plus an annual premium lasting 11 years or the life of the loan depending on loan to value at origination, while Conventional has no required upfront premium and its PMI can be cancelled. Occupancy: FHA is for owner occupants only, while Conventional extends to second homes and rentals. Credit: FHA's published score tiers make it more accommodating of a rebuilding profile. Neither is universally cheaper, so compare them on your actual numbers.

For 2026 the conforming loan limit is $832,750 for a one unit home, and every Georgia county sits at that baseline since none carries a high cost designation. Multi unit limits are higher: $1,066,250 for two units, $1,288,800 for three and $1,601,750 for four. Above the applicable limit a loan becomes a Jumbo with different guidelines. Worth knowing: in metro Atlanta the FHA limit for a one unit home is $718,750, which is lower, so there is a price band where Conventional financing is available and FHA is not.

No. Conventional financing is made to individuals, so the loan closes in your personal name rather than in an entity's name. This is a common point of confusion for investors, and it is one of the clearest reasons to look at a different product family. If holding the property in an entity is important to your strategy, an investor or business purpose loan is generally the right conversation. Moving title into an entity after closing raises separate considerations with your existing lender, and that is a question for your attorney and your servicer rather than something to assume.

Often, yes. Conventional financing is comfortable with a borrower who owns more than one financed property. The questions that decide it are whether you can carry both housing payments within your debt to income ratio, what documentation is required to use rental income from the departing residence, and whether you have the reserves the file requires. If you are in Georgia, also check whether the property tax picture on the departing home changes once it is no longer your homestead, since that affects the housing expense used for that property.

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Accuracy Matters

Reviewed for accuracy by a licensed mortgage professional

Mortgage guidelines change, and loan limits reset every year. We date every review so you know how current this page is.

Reviewed by a licensed mortgage professional

Coby Pegues
President | Loan Originator
NMLS #2556341

Last reviewed [CMS REVIEW DATE]. Sources verified [CMS SOURCE VERIFICATION DATE].

Sources and references

Program figures on this page come from primary agency and government sources. Loan limits and mortgage insurance rules are time sensitive and are re-verified at each review date.

Your Next Step

Find Out Whether a Conventional Loan Fits Your Situation

Whether you are a business owner wondering how your returns will read, an investor sizing up a rental or a homeowner moving up, the next step is a short conversation about what you may qualify for.

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Or call us at 404.919.5533. Loans That Get U Home.

Required Disclosure

Representative Examples

These are examples of typical transactions, shown because this page states down payment figures. They are illustrations of representative terms, not offers, and not a commitment to lend.

Example scenario Purchase price Down payment Loan amount Terms of repayment Interest rate Annual percentage rate
Primary residence, first time buyer $350,0003% ($10,500)$339,500 360 monthly principal and interest payments of [P_AND_I], 30 year fixed [RATE][APR]
Primary residence $400,0005% ($20,000)$380,000 360 monthly principal and interest payments of [P_AND_I], 30 year fixed [RATE][APR]
Second home $450,00010% ($45,000)$405,000 360 monthly principal and interest payments of [P_AND_I], 30 year fixed [RATE][APR]
Investment property, one unit $300,00015% ($45,000)$255,000 360 monthly principal and interest payments of [P_AND_I], 30 year fixed [RATE][APR]
Investment property, two to four unit $600,00025% ($150,000)$450,000 360 monthly principal and interest payments of [P_AND_I], 30 year fixed [RATE][APR]

Payments shown are principal and interest only. They do not include amounts for taxes and insurance premiums, and your actual payment obligation will be greater.

Examples assume a 30 year fixed rate loan, a qualifying credit profile, and include private mortgage insurance where the down payment is less than 20 percent. Rates, annual percentage rates and payments are as of [CMS RATES AS OF DATE] and are subject to change. Your rate, annual percentage rate and terms may differ and depend on credit, occupancy, property type, loan amount, loan purpose and other factors.

These examples reflect representative terms and are not an offer, a rate lock, a preapproval or a commitment to lend. All loans are subject to underwriting, program requirements and credit approval. UHome Mortgage LLC, NMLS #2559453. Equal Housing Opportunity.

Disclosures

General mortgage disclosure

[CMS: General disclosure] This page is for educational purposes and is not a commitment to lend. Program requirements may vary. Eligibility depends on the complete borrower profile and the property. All loans are subject to underwriting, program requirements and credit approval. Additional requirements may apply.

Conventional program disclosure

[CMS: Program disclosure] Conventional loans are conforming mortgages underwritten to Fannie Mae or Freddie Mac guidelines. Down payment, loan to value, credit score, reserve and documentation requirements referenced on this page are current agency guidelines as of the review date and are stated as program maximums or general requirements rather than as terms offered to any borrower. Loan limits are set annually by the Federal Housing Finance Agency and change each year. Private mortgage insurance applies to loans with less than 20 percent equity. Cancellation and termination requirements differ by occupancy and property type, are subject to payment history and other conditions, and are determined by the applicable servicing requirements for your loan. Rental income treatment, reserve requirements and financed property limits are determined by agency guidelines and the automated underwriting findings for your specific file. Nothing on this page is an offer to lend, a rate quote or a determination of eligibility.

Self employed income example

[CMS: Example disclosure] The worked qualifying income example on this page is educational and uses illustrative figures. It does not represent an actual borrower, is not a promise of qualification and does not establish how any specific file will be analyzed. Actual income analysis depends on the complete personal and business tax returns, the applicable cash flow analysis, and underwriting requirements in effect at the time of application.

Representative example

Because this page states down payment figures, Regulation Z requires representative examples of typical transactions. They are set out in full in the Representative Examples section above, including down payment, terms of repayment, interest rate and annual percentage rate for each scenario shown on this page.

Georgia property tax information

[CMS: State information disclosure] Georgia property tax and homestead exemption information on this page is general and educational. Exemption eligibility, assessment treatment and local adoption vary by county and municipality and change over time. Nothing on this page is tax advice. Consult your county tax authority or a qualified tax professional regarding your specific property.

Licensing information

Coby Pegues, NMLS #2556341 · UHome Mortgage LLC, Company NMLS #2559453

[CMS: State licensing] UHome Mortgage LLC is an independent mortgage brokerage, not a lender. Licensed in Georgia, Alabama and Texas. State licensing details placeholder. Verify licensing at NMLS Consumer Access.

Equal Housing Opportunity

[CMS: EHO statement] Equal Housing Opportunity. Placeholder for the Equal Housing statement and logo placement.

Additional program disclosures

[CMS: Additional disclosures] Repeatable disclosure blocks may be added per loan program without editing the template.