Conventional Loans
A conventional loan is a type of mortgage loan that is not insured or guaranteed by the government. Instead, the loan is backed by private lenders, and its insurance is usually paid by the borrower.
A conventional loan is usually a good choice if you have good credit, good finances and money for a down-payment.
Quick Overview
Minimum Credit Score: 620
Debt-to-Income ratio: good range up to 43% (some lenders will allow up to 50% but risker)
Stable Income: Minimum 2-year Work History
Positive Credit History
Sufficient Assets: meeting down payment and closing requirements
Down Payment: 3% to 20%
Loan Terms: 10, 15, 20, 30, or 40 years
Mortgage Insurance: None required with a down payment of at least 20%
Gift funds are allowed
Down Payment Assistance is allowed.