The requirements for conventional loans are the same as to those mortgages which are protected by the federal government, but they are stricter:
- You need to show all related documentation: a Social Security number, or driving license, employment and salary history. Also, you will be asked to confirm your current and previous income.
- It’s a limit in 28% of your total monthly income that can’t be exceeded with mortgage payments combined with insurance, taxes and other fees.
- You can’t pay more than 36% of your total regular income to cover mortgage and other debt payments.
- You should have a credit score higher than 620. (Develop the seven habits helping maintain a perfect credit score).
- You are required to pay a 20% down payment. But you can choose to cover purchase mortgage insurance that allows you to make lower down. (Find out what PMI is and what it covers).
- The largest amount available for conventional loan borrowers is $417,000.
If you meet these necessary points, you can qualify for home loan.