Conventional Loans are the closest you’ll find to a “one size fits all” loan type, suiting a wide range of buyers and property types. Though Conventional Loans meet downpayment and income requirements established by reputable organizations like the Federal Housing Finance Administration (FHFA), they are not supported by a federal guarantee, meaning they have stricter qualification expectations than most other loan types.
Conventional Loans are ideal for borrowers with robust credit who can put at least a 3% downpayment toward their dream home. Applicants will need a minimum credit score of 620 to qualify for a Conventional Loan and will want an even higher credit score to lock in a desirable interest rate.