Additional Information
Conventional Loan Requirements in 2025
- Credit Score: 620+ for most lenders.
- Down Payment: Minimum 3% for first-time buyers, 5%+ for repeat buyers.
- Debt-to-Income Ratio: Generally 43% or less.
- Stable Income & Employment History: Usually a two-year work record.
- Property Appraisal: Must meet lender and Fannie/Freddie standards.
Who Can Benefit from a Conventional Loan?
- Buyers with strong credit who want competitive interest rates.
- Borrowers with a stable income and a lower debt-to-income ratio.
- Homebuyers able to make a larger down payment to reduce or eliminate mortgage insurance.
- Repeat buyers looking for flexibility in loan terms and property types.
Advantages of Conventional Loans
- Flexible Loan Terms – Options include fixed-rate or adjustable-rate, with terms from 10 to 30 years.
- No Upfront Mortgage Insurance – Unlike FHA loans, there’s no upfront premium required.
- Avoid Private Mortgage Insurance (PMI) – With a 20% down payment, PMI isn’t required.
- Higher Loan Limits – Especially with jumbo loans for higher-priced homes.
- Property Flexibility – Can be used for primary residences, second homes, or investment properties.
Is a Conventional Loan Right for You?
If you have strong credit, a stable income, and want the flexibility to choose your loan term, a conventional loan might be your best option. I can help you compare conventional, FHA, VA, and other loan programs so you get the right fit for your goals and budget.
