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Requirements

Conventional loan requirements

Conventional loan requirements depend on the specific program, automated underwriting findings, occupancy, property type, and borrower circumstances. What follows is a general framework — not a checklist that guarantees approval.

Who this may fit

This guide is for prospective borrowers who want to understand what a lender typically looks at before applying for a conventional loan.

Key decision factors

  • Credit score and credit history (thresholds vary by program and pricing tier)
  • Debt-to-income ratio, often measured back-end
  • Down payment and source of funds
  • Reserves (months of mortgage payments in liquid assets)
  • Property type and occupancy (primary, second home, investment)
  • Employment and income documentation

Illustrative example

Common mistakes

  • Treating a single online minimum as the definitive requirement
  • Underestimating reserves for second homes and investment properties
  • Assuming credit-score cutoffs are the same across all lenders

Questions to ask a licensed loan officer

  • Which program's guidelines are you using for my file?
  • What documentation will be required for income and assets?
  • Are there compensating factors that could help my scenario?

Sources

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