The Conventional Loan is generally for people who have good credit scores, a steady income source and have saved up a nice chunk of change for a down payment.
Conventional loans are a great tool for anyone with a good credit history as well as a steady job or self-employment income. These types of mortgages are not backed by the government so that means there is a greater risk for your lender and more requirements for the borrower.
Whether you’re a first-time homebuyer or looking at purchasing a multi-unit structure, there is a conventional loan that’s going to meet your needs. However, you should note that your debt-to-income ratio should not exceed 50% regardless of your credit history and income.
There are a number of types of conventional loans based upon the property you are looking to purchase and other factors. The following requirements are minimums for conventional loans.
You need a solid credit history and income history to qualify for a conventional loan. Please give us a call for a free consultation to find out more.
See what you could get pre-approved for.