No matter what your purchase needs are, you’re in good hands. We have mortgage purchase programs for every situation.
If you’re buying your first home or looking for extra space, a conventional loan may be right for you.
The general rule of thumb for conventional loan down payments is 20%, but you can put down as little as 3%.
Your down payment requirement and rate will depend on your lender and your credit history.
You will have to cover appraisal and origination costs and pay mortgage insurance if your down payment is less than 20%.
In order to qualify for a conventional loan, you will have to provide proof of income and employment, authorize your lender to run a credit report, and provide proof of assets and your down payment information.
Conventional Home Loan Requirements Today At a minimum, you will need a 620 credit score to qualify for a conventional mortgage. However, it’s best to raise your credit score to at least 740 so you can lock in the best rate.
Lengthening your loan term can result in paying more interest.
Cashing out a portion of your equity will result in a higher loan amount on your new mortgage loan, which could increase your monthly payment.
There’s no guarantee you’ll get better terms on the new loan.
If market rates have increased enough since you got your first loan, a better credit score may not be enough to help you score a lower interest rate.
Use our Mortgage Tools & Calculators to estimate your mortgage payments with taxes and insurance. Simply enter in the market value price of the home, your down payment amount available, and details about the mortgage loan to calculate your payment breakdown, scheduling, and more.