Conventional Loan
620+ Credit · 3%–20% Down · ConformingWho are Conventional Loans best for?
Conventional loans are frequently the best option for buyers with good credit who can put down at least 3% of the purchase price, if not more.
How do Conventional Loans work?
You must apply for a conventional mortgage loan at your bank, credit union, or mortgage broker. A complete credit check will be performed, as well as any other criteria imposed by the lender, such as cosigner information and mortgage insurance.
What are the qualifications?
Conventional Loans require a 620 credit score, 3%–20% down, and a maximum debt-to-income ratio between 43%–50%, depending on the type of conventional loan program you qualify for.
Conventional Loan Requirements
Loan Requirements
- 620 credit score
- Maximum 43% DTI Ratio
- 3%–20% down payment
- Two years tax returns and W2s
- 36 month waiting period after bankruptcy
Credit Requirements
Mortgage lenders don't just look at your credit score. They look at your entire credit report to determine eligibility and loan terms. Derogatory credit history such as late payments, collection accounts, and excessive debt will affect your ability to qualify regardless of your credit rating.
- Minimum 620 credit score
- No mortgage late payments in the last 6 months
- 48 month waiting period after a bankruptcy or foreclosure
- No judgments or liens
- Student loans are included in DTI ratio unless on deferred payments
Down Payment Requirements
Conventional loans require a down payment between 3%–20% of the purchase price, depending on which type of conventional loan you qualify for.
The down payment cannot be a loan. You will need to provide 2–3 months of bank statements showing you have the funds in savings. The down payment can also be a gift from a friend or family member.
- Down payment between 3%–20%
- Mortgage insurance is required if the down payment is less than 20%
- Can be a gift from a friend or family member
- Down payment can come from savings, 401k, or investment accounts
- Cannot use a loan
Conventional Loan Benefits
- You can make a down payment as low as 3%
- If your down payment is at least 20%, you can avoid paying private mortgage insurance (PMI)
- In most counties, you can typically borrow more than you can with an FHA loan
- Mortgage rates are typically lower for conventional loans than FHA loans
- Rewards good credit with lower interest rates
- Low down payment options
- Save money with a shorter term loan
- Conventional loans can be used for a variety of purchase types, including second homes, vacation homes, rental properties, multi-unit dwellings, and more
Conventional · Primary, Second Homes & Investment
Conventional Property Requirements
- A single-family dwelling or multifamily dwelling with no more than four units
- After your down payment, can be purchased using a loan amount within current conforming loan limits
- Located in the U.S., Guam, Puerto Rico, or the U.S. Virgin Islands
- Residential in nature
- Securable as real estate with a good title
- “Safe, sound, and structurally secure”
- Insurable for flood and home risks
- Easily accessible by roads that meet local standards
- Connected to utilities that meet local standards
- Appropriate for year-round use
Eligible · 1–4 Unit Residential
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Get a QuoteConventional Loan
620+ Credit · 3%–20% Down · ConformingWho are Conventional Loans best for?
Conventional loans are frequently the best option for buyers with good credit who can put down at least 3% of the purchase price, if not more.
How do Conventional Loans work?
You must apply for a conventional mortgage loan at your bank, credit union, or mortgage broker. A complete credit check will be performed, as well as any other criteria imposed by the lender, such as cosigner information and mortgage insurance.
What are the qualifications?
Conventional Loans require a 620 credit score, 3%–20% down, and a maximum debt-to-income ratio between 43%–50%, depending on the type of conventional loan program you qualify for.
Conventional Loan Requirements
Loan Requirements
- 620 credit score
- Maximum 43% DTI Ratio
- 3%–20% down payment
- Two years tax returns and W2s
- 36 month waiting period after bankruptcy
Credit Requirements
Mortgage lenders don't just look at your credit score. They look at your entire credit report to determine eligibility and loan terms. Derogatory credit history such as late payments, collection accounts, and excessive debt will affect your ability to qualify regardless of your credit rating.
- Minimum 620 credit score
- No mortgage late payments in the last 6 months
- 48 month waiting period after a bankruptcy or foreclosure
- No judgments or liens
- Student loans are included in DTI ratio unless on deferred payments
Down Payment Requirements
Conventional loans require a down payment between 3%–20% of the purchase price, depending on which type of conventional loan you qualify for.
The down payment cannot be a loan. You will need to provide 2–3 months of bank statements showing you have the funds in savings. The down payment can also be a gift from a friend or family member.
- Down payment between 3%–20%
- Mortgage insurance is required if the down payment is less than 20%
- Can be a gift from a friend or family member
- Down payment can come from savings, 401k, or investment accounts
- Cannot use a loan
Conventional Loan Benefits
- You can make a down payment as low as 3%
- If your down payment is at least 20%, you can avoid paying private mortgage insurance (PMI)
- In most counties, you can typically borrow more than you can with an FHA loan
- Mortgage rates are typically lower for conventional loans than FHA loans
- Rewards good credit with lower interest rates
- Low down payment options
- Save money with a shorter term loan
- Conventional loans can be used for a variety of purchase types, including second homes, vacation homes, rental properties, multi-unit dwellings, and more
Conventional · Primary, Second Homes & Investment
Conventional Property Requirements
- A single-family dwelling or multifamily dwelling with no more than four units
- After your down payment, can be purchased using a loan amount within current conforming loan limits
- Located in the U.S., Guam, Puerto Rico, or the U.S. Virgin Islands
- Residential in nature
- Securable as real estate with a good title
- “Safe, sound, and structurally secure”
- Insurable for flood and home risks
- Easily accessible by roads that meet local standards
- Connected to utilities that meet local standards
- Appropriate for year-round use
Eligible · 1–4 Unit Residential