Conventional
Flexible, Traditional Mortgage Options
Conventional Requirements
620
Credit Score
Conventional loans require a minimum credit score of 620. If you don't meet this, don't worry, we have other pathways to homeownership.
3%
Down Payment
The minimum down payment is based on several factors, including loan type, credit score and debt-to-income (DTI) ratio.
45%
Debt-to-Income Ratio
Your total monthly debt, including the new mortgage, should not exceed 45% of your gross monthly income. Exceptions can be made for borrowers with strong compensating factors.
Other Requirements
Loan Limits
For a conforming conventional loan, your loan must fall within the loan limits set by Fannie Mae and Freddie Mac. For the current year, the conforming loan limit for a single-family home is the specified conforming loan limits. There are exceptions, however. Alaska, Hawaii, and other high-cost areas of the country have higher loan limits, ranging up to $1,089,300.
PMI
If you put down less than 20% on a conventional loan, you’ll be required to pay for private mortgage insurance (PMI). PMI protects mortgage investors in case of a loan default. The cost for PMI varies based on your loan type, your credit score, and the size of your down payment.
