What is a Conventional Loan?

A conventional loan is a mortgage that isn’t backed by the federal government, unlike FHA, VA, or USDA loans. Instead, the lender assumes the risk, which means borrowers must meet specific credit, income, and financial requirements. These loans often offer competitive rates and flexible terms, making them a great option for many homebuyers

Who is eligible for a Conventional Loan?

To qualify for a conventional loan, borrowers must meet certain criteria, including a good credit score, stable income, and a low debt-to-income ratio. While requirements vary based on the loan type, most lenders require a minimum credit score of 620, though a higher score may be needed for better rates. You'll also need to provide proof of income, such as pay stubs, W-2s, and tax returns. Meeting these qualifications can help you secure competitive rates and flexible loan terms.