Conventional loans typically require less documentation than other loan products and are a great option for anyone that meets the down payment or equity requirements. They offer fixed and adjustable rates.
To qualify you will need to have:
- A 3%-20% down payment. In order to avoid private mortgage insurance you will need to have 20% down, but it will automatically fall off when your loan to value reaches 78%. You also have the option to purchase up-front PMI so you don’t have to pay it monthly.
- Sufficient documented income for the debt to income ratio to be a max of 50%.
- A credit score of 620 or higher, depending on the overall picture such as debt to income ratio and loan to value. These factors will also play a huge part in the interest rate you can be approved for.
- The seller concession is limited to 3-9% of the sales price.
- The maximum loan amount is $548,250.