Conventional Loans

A conventional mortgage typically requires borrowers to have a strong credit score, usually at least 620 or higher, to qualify for the best rates and terms. A down payment of at least 3% to 5% is generally needed, with larger down payments often resulting in better interest rates and no private mortgage insurance (PMI) if the down payment reaches 20% or more. Lenders also look at the borrower’s debt-to-income ratio, employment history, and overall financial stability to ensure they can handle the loan payments. Additionally, applicants may need to provide proof of income, assets, and creditworthiness to meet the lender’s standards for a conventional loan.