Conventional Mortgage Loan

Conventional mortgage loans are not backed by a  government agency, such as FHA or VA.

A Conventional mortgage often meets the down payment and income requirements set by Fannie Mae and Freddie Mac, and it often conforms to the loan limits set by the Federal Housing Finance Administration (FHFA). Fannie Mae and Freddie Mac are government-sponsored enterprises that purchase mortgages from lenders and sell them to investors. 

Requirements:

• In most cases, you’ll need a credit score of at least 620 to qualify for a conventional loan.
• For most conventional loans, your debt-to-income (DTI) must be 50% or lower.  You can calculate your DTI by adding up the minimum monthly payments on all your debts and dividing it by your gross monthly income.
• Loan amount must fall within the loan limits set by Fannie Mae and Freddie Mac. The loan limit changes annually.