Qualifying for a Conventional Mortgage

The days of zero-down payment loans and no-income-verification loans are long gone. Most lenders will require a credit score of 660. It is possible to get a conventional loan with a credit score as low as 620, the interest rate will be higher because of the added risk of the low credit score. Conventional mortgage loans usually require a minimum down payment of 5% with 10% required on condominium purchases. For those buyers who want a minimum down conventional loan with the best rate, you will want a 720 credit score or higher. For those who qualify, a conventional mortgage typically offers the lowest costs and best interest rates. With a credit score lower than 720, an FHA loan may be a better choice.