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- Written by Olivia Huntley
How to Qualify for a Conventional Loan: Key Requirements and Tips
A conventional loan is a popular mortgage choice, but qualifying requires meeting some financial criteria. If you’re buying a home, the following is what you need to know to improve your approval chances.
Basic Qualification Requirements
Credit Score
A minimum of 620 is needed by most lenders, but the better the score (700+), the better the rates.
Debt-to-Income Ratio (DTI)
Keep your DTI below 43% to show lenders you can manage monthly payments.
Down Payment
First-time buyers can put down as little as 3%, but 20% eliminates private mortgage insurance (PMI).
Stable Job & Income
Two years of stable income from employment or self-employment is preferred by lenders.
Loan Limits
FHFA has set the 2025 conforming loan limit. View current limits on the FHFA website.
Key Documents Needed
- Pay stubs and W-2s or tax returns (most recent two years)
- Bank statements (recent two months) to verify savings
- Employment verification or self-employment documentation
- Credit report to assess financial history
- List of ongoing debts and liabilities
See What You Qualify For
Tips to Make Your Application Stronger
Enhance Your Credit Score
Pay bills promptly, reduce debt, and avoid opening new credit accounts.
Lower Your Debt-to-Income Ratio
Eliminate loans and credit card debt.
Increase Your Down Payment
A larger down payment reduces loan risk and monthly costs.
Get Pre-Approved
Getting pre-approved by a lender gives you an idea of what you can afford.
Start House Hunting with View Open Houses
Once you prequalify for a mortgage, the second step is to get the best house. SeeOpenHomes.com makes house hunting easy with open house listings and no agent commissions—placing you in full control of your house hunt.
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