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Conventional Mortgages

Fixed-rate Home Loans

Conventional mortgages are the most common type of home loan and provide you the ability to have a fixed-rate mortgage for 10, 15, 20, or 30 years. A conventional mortgage can be used for a primary home, second home and investment properties.

Conventional Loan Qualification Criteria

Down payment: Conventional mortgage loans typically need larger down payments than required with government-backed loans. A typical down payment for a conventional loan is 3%-20%. If the down payment amount is lower than 20%, private mortgage insurance (PMI) is required.

Credit score: Typically, a credit score of 640 is the minimum to obtain a conventional loan, and 740 is the minimum score you need to get the best rates available.

Ability to repay: Borrowers must show they have the ability to repay the loan based upon their current income.

Debt-to-income ratios: One of the main factors when determining your ability to afford a loan is your debt-to-income (DTI) ratio. Your DTI ratio is the relationship between your monthly debt payments and gross monthly income. This ratio needs to be reasonable to qualify for a conventional mortgage loan, meaning the amount you spend on monthly payments needs to be “reasonable” compared to your monthly income. Typically, your ratios need to be less than 43%, but it is possible for them to be higher.


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