What do you need to qualify for a conventional loan?
Qualifying for a Conventional Loan
Conventional loan qualifications are often more stringent than other loan types. Here’s what most lenders will expect from a borrower looking to obtain a conventional, non-conforming loan:
A credit score of at least 620
A debt-to-income ratio below 50%
Using the loan for your primary residence
Borrowing an amount within the “conforming” limit. In most of the US, this is $453,100. In higher-cost areas, this can be $600,000 or more.
Here are some additional requirements that tend to vary from lender to lender:
Down payment amount. Most lenders prefer you have a down payment of 20%, but this can be hard to put together -- especially for first-time home buyers. There are other loan programs (the Conventional 97 loan and the FHA loan, for example) that require 3.5% or less down.
Employment history. Lenders are more likely to approve you for a home loan if you can demonstrate a consistent work history and reliable income source. Typically, two years of work at the same employer will be enough to suffice.
To learn more about conventional mortgage qualifications, check out our loan product page or first-time home buyer guide.