Eligibility and Credit Requirements
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​To qualify for a conventional loan, you generally need a minimum FICO score of 620.

However, if you choose to buy with less than 20% down and require mortgage insurance, a higher credit score of 640 might be necessary.

Down Payment and Mortgage Insurance
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​One of the most appealing aspects of conventional loans is the low-down payment requirement.

You can start with as little as 3% down, making homeownership accessible even if you haven’t saved a large sum of money.

Additionally, if you're able to put down 20% or more, you can avoid paying mortgage insurance altogether, which can significantly reduce your monthly housing cost.

Conclusion

Conventional loans provide a robust and flexible path to homeownership with considerable purchasing power and a variety of options depending on your financial situation and homebuying goals.

With features like low down payments, the possibility to avoid mortgage insurance, and the ability to use gift funds, they represent a sound choice for many buyers.
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👉Check out the Income Limits for Conventional Loans