To qualify for a Conventional loan, you’ll need:

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:

• 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.

• Conventional 95 – 5% down payment, 620 credit score, PMI required

• Home Possible – First-time homebuyer, 3% down payment, income limits

• Home Ready – Fannie Mae program for first-time homebuyers with 3% down & 620 credit score

• Piggyback 80/10/10 – 80% LTV conventional loan, 10% second loan, 10% down, no PMI

• Conventional 97 – 3% down payment, 680 credit score, no income limits, PMI required

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