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What Are the Main Conventional Loan Requirements?

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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.
  • 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.