Requirements and Qualifications
- Loan amount - The loan amount for a conforming mortgage is generally limited to $424,100 for a single-family home, though limits may be higher in regions where home prices are higher. Jumbo loans allow you to exceed the conforming loan limit to borrow for a higher-priced home.
- Down Payment - Most conventional loans will require at least 5 percent (and optimally 20 percent or more) as a down payment. For loans with lower down-payment requirements, explore government-backed mortgages like VA loans and FHA loans.
- Credit history - Conventional loans are a good choice for borrowers with excellent credit, which generally means a FICO score of 740 or higher. There are also established guidelines for income and other personal financial information.
Conventional fixed-rate mortgages are a popular option, but they're not the only one. Compare mortgage options to learn more on your own, or contact a mortgage loan originator to find out which mortgage option may be the best fit for you.
Conventional fixed 30 year
On a $150,000 loan for 360 months at 4.25% interest rate, monthly payments would be $737.91. No customer paid closing costs, APR is 4.25%.
Conventional fixed 20 year
On a $150,000 loan for 240 months at 4.125% interest rate, monthly payments would be $918.89. No customer paid closing costs, APR is 4.125%.
Conventional fixed 15 year
On a $150,000 loan for 180 months at 3.50% interest rate, monthly payments would be $1,072.33. No customer paid closing costs, APR is 3.50%.
Conventional fixed 10 year
On a $150,000 loan for 120 months at 3.25% interest rate, monthly payments would be $1,465.79. No customer paid closing costs, APR is 3.25%.
All payment examples above do not include amounts for taxes and insurance premiums. The monthly payment obligation will be greater if taxes and insurance are included and an initial customer deposit may be required if an escrow account for these items is established.