Conventional Loan
- A conventional mortgage loan is not insured by a government program. They are available with several different term options with most people choosing between 15-year and 30-year terms. Generally speaking, conventional loans have stricter credit requirements than government-backed loans, but they generally offer lower costs than other loan types. If you meet credit score requirements and want a down payment of as low as 3%, a conventional mortgage might be the best solution for you.
Just like any other type of mortgage loan, you’ll need to meet certain criteria to qualify for a conventional home loan:
- In most cases, you’ll need a credit score of at least 620 to qualify for a conventional loan.
- For most conventional loans, your debt-to-income ratio can be up to 50%, however a lower DTI increased your likelihood of approval.
- It’s possible for first-time home buyers to get a conventional mortgage with a down payment as low as 3%, but the down payment requirement can vary based on your personal situation and the type of loan or property you’re getting.
- If you’re not a first-time home buyer or making no more than 80% of the median income in your area, the down payment requirement is 5%.
- If the house you’re buying is not a single-family home (i.e., it has more than one unit), you may need to put down 15%.
- If you’re buying a second home, you’ll need to put at least 10% down.
- If you’re getting an adjustable-rate mortgage, the minimum down payment requirement is 5%.
To get pre-approved for a conventional mortgage for a purchase or refinance, please click the Get Approved button below. Still have some questions? Call your licensed Approved Mortgage Solutions mortgage broker at the phone number below or Contact Us and we’ll reach out to you.