When it comes to getting a conventional loan, there are certain criteria you need to meet.
Most lenders require borrowers to have a minimum credit score of 620 and make a down payment of 3-5%.
Your debt-to-income ratio must be below 43% and the loan amount needs to be within the local conforming loan limits.
You must also provide proof of steady employment income and have a clean credit history with no recent bankruptcies or foreclosures.
Fannie Mae and Freddie Mac set the minimum conventional loan requirements, but individual lenders may have their own stricter standards for credit score or debt-to-income ratio.
If you don’t qualify at first, it can pay off to shop around for other options to find one that works for you.
When you are ready to apply for a conventional loan, make sure you understand all your options and discuss them with your banker so that you can receive the best advice on how to find success in securing financing for your home purchase.
