A conventional loan is any type of mortgage loan that isn’t guaranteed by the federal government. When you have a conventional loan, it’s either conforming or non-conforming. A conforming conventional loan follows the guidelines as set forth by Fannie Mae and Freddie Mac, and a non-conforming conventional loan doesn’t follow these guidelines.
Let’s jump into some of the most frequently asked questions for conventional loans:
What are the conventional loan requirements?
Most lenders require a credit score of at least 620 in order for you to be eligible for a conventional loan. Additionally, you shouldn’t have a debt-to-income ratio that exceeds 36%.
What down payment is required for a conventional loan?
With a conventional loan, you must put…