What are conventional loan requirements?
Conventional approval is based on credit (typically 620+ minimum), DTI (commonly capped 45-50% with overlays), documented stable income, sourced and seasoned assets for the down payment and reserves, an acceptable property and appraisal, and a loan amount within the conforming limit. Lender overlays often tighten Fannie/Freddie's published rules.
What this actually means.
The minimum acceptable file generally clears: credit score 620+ (most lenders; some require higher), DTI within automated underwriting tolerance (often 45-50%), two-year employment history with stable income, three to twelve months of reserves depending on file complexity, down payment from documentable sources (own savings, gift, eligible borrower-paid sources), property meeting collateral standards, and loan amount at or below the FHFA county limit (or jumbo if above). Subject to Fannie Mae / Freddie Mac selling guides and lender overlays.
What this looks like on a real file.
Where this can move.
Credit, income type and stability, debt ratio, reserves, automated underwriting findings, and lender overlays can change the answer.
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More conventional questions on Requirements.
Educational only. Conventional loan guidelines, lender overlays, rates, fees, PMI, LLPAs, and underwriting requirements can change. Final eligibility depends on full underwriting review. Mortgage Expert, Inc. is not affiliated with Fannie Mae, Freddie Mac, FHFA, or any government agency.