Conventional Mortgage Loan Guidelines
The conventional mortgage loan has flexible requirements compared to other loan programs. Learn more below to see if you can use this option to your advantage when purchasing a home.
3% Down Payment
Step into your new home with a down payment as low as 3%.
This program requires a minimum 620+ FICO credit score.
56% Max DTI
Your debt-to-income ratio should be no more than 56%.
Overview of the Conventional Loan
Conventional Conforming Mortgages offer lower rates because they are originated to guidelines established by Fannie Mae or Freddie Mac, which are Government Sponsored Enterprises (GSEs).
These loans must also “conform” to the established maximum loan limits set by Fannie Mae and Freddie Mac. For self-employed 1 year of taxes and 5 years in business is required. Certain credit scores have avoid the need to pay for PMI (private mortgage insurance).
This home buying program is not only for first time home buyers. This program can also help those who are looking for a second home or purchasing an investment property. The down payment requirements may change depending on the purpose of the property. This program also comes in various forms so see if it fits your situation today.
Additional Benefits of the Conventional Loan
There are additional pros of going with this program when purchasing your home.