Conventional Loans

conventional loansWhat are the credit requirements for a Conventional home loan?

To determine if you qualify for Conventional loans, your lender will look at a few different key factors:

  • Your credit history and credit profile. Now depending on your circumstances and your lender, the credit standards may be flexible. A FICO score of ~640 or above is very helpful
  • Your income compared to your monthly expenses. The standard debt-to-income ratios are 43% for Conventional loans. These ratios may be exceeded with a variety of mitigating factors, for example, excellent credit.
  • The underwriter will look at your overall pattern for the last few previous years.


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What’s the down payment required for Conventional loans and what will my interest rate be?

Your down payment and your interest rate will depend on a few different key factors. Obviously, the interest rate will vary from person to person and will always be a case-by-case determination. Be sure to check with your lender about current interest rates.



  • Conventional loans require the potential buyer to put at least 3% – 20% of the sales price in cash for the down payment and closing costs.
  • New for 2015, you can now potentially be eligible for just a 3 percent down payment on a Conventional loan. Please ask your lender about the rules and restrictions regarding this change to the guidelines.
  • Your interest rate will depend on your credit score.
  • Interest rates are driven by Mortgage-Backed Securities (MBS). These are “mortgage bonds”.
  • Mortgage-Backed Securities (MBS) will determine the range of the interest rates in which your interest rate will fall somewhere in that range.
  • The interest rate also depends on the whole amount of the loan. Normal loan limits are $510,400; in higher-cost areas, it reaches $765,600.


If you have credit concerns, we have partners that are experts in getting our clients “mortgage ready” with their credit scores.

Conventional loan rates today