Conventional Loan Requirements 2025: Complete Guide to Qualify

Sarah Mitchell, Senior Mortgage Advisor & VA Loan Specialist
VA LoansFHA LoansFirst-Time Buyer Programs
β€’21 min readβ€’Mortgage Requirements

Master conventional loan requirements in 2025. This complete guide covers credit scores, down payments, income verification, and insider strategies to get approved with the best terms.

🎯 Quick Requirements Summary

  • β€’ Credit Score: 620 minimum, 740+ for best rates
  • β€’ Down Payment: 3% first-time buyers, 5% repeat buyers
  • β€’ Debt-to-Income: 43-45% maximum (up to 50% with strong profile)
  • β€’ Employment: 2 years stable employment history
  • β€’ Reserves: 2-6 months recommended

What Is a Conventional Loan?

A conventional loan is a mortgage not backed by government agencies like FHA, VA, or USDA. These loans follow guidelines set by Fannie Mae and Freddie Mac and typically offer the most competitive rates and terms for qualified borrowers.

πŸ’° Check Your Qualification

See if you qualify for a conventional loan and compare rates from multiple lenders.

Check Qualification & Rates β†’

Conventional Loan Requirements Breakdown

1. Credit Score Requirements

Credit score is the most important factor for conventional loan approval and rate determination.

Credit Score RangeLoan ApprovalInterest RateDown Payment
760+βœ… ExcellentBest rates available3% minimum
740-759βœ… Very GoodExcellent rates3% minimum
680-739βœ… GoodCompetitive rates3-5% required
620-679⚠️ PossibleHigher rates5-10% required
Below 620❌ UnlikelyNot availableConsider FHA

Frequently Asked Questions

What credit score do you need for a conventional loan in 2025?

You need a minimum credit score of 620 for a conventional loan in 2025, but 740+ gets you the best rates. Most lenders prefer 680+ for competitive terms.

What is the minimum down payment for a conventional loan?

The minimum down payment for a conventional loan is 3% for first-time buyers and 5% for repeat buyers. However, 20% down avoids PMI.

What is the maximum debt-to-income ratio for conventional loans?

The maximum debt-to-income ratio is typically 43-45% for conventional loans, though some lenders allow up to 50% with strong credit and reserves.

Do you need PMI on conventional loans?

Yes, you need PMI if you put down less than 20%. However, conventional loan PMI can be removed once you reach 20% equity, unlike FHA MIP.

🎯 Ready to Apply?

Don't wait to start your conventional loan application. Get pre-approved today and compare rates from multiple lenders to ensure you get the best deal.

Sarah Mitchell - Senior Mortgage Advisor & VA Loan Specialist

Meet Sarah

Senior Mortgage Advisor & VA Loan Specialist

12+ years Experience45+ ArticlesNMLS Licensed

Sarah Mitchell brings over 12 years of mortgage industry expertise, specializing in VA loans and first-time homebuyer programs. As a certified NMLS professional, she has helped thousands of veterans and military families achieve homeownership through specialized loan programs. Her deep understanding of VA benefits and down payment assistance programs makes her a trusted advisor for service members transitioning to civilian life.

EXPERTISE:

VA LoansFHA LoansFirst-Time Buyer ProgramsDown Payment Assistance

KEY ACHIEVEMENT:

Helped 2,500+ veterans secure home loans

12+ years
Experience
45+
Articles
NMLS
Licensed
Expert
Certified