2021 credit scores for conventional home loans

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Conventional Home loans require a high credit score. The target is a score of at least 620, but it is always best to aim to increase your credit score as much as possible. 

Conventional loans are the type of mortgage that are available through most lenders. They are not backed by a government agency, like FHA and VA loans. They do follow the same governmental guidelines for loan limits and credit scores and down payment minimums. 

With a conventional loan, eligibility requirements are usually stricter than FHA and VA loans since conventional loans are not insured or guaranteed by the government. If you've had a foreclosure or a bankruptcy in the past, you might have more trouble qualifying for a conventional loan. 

Typically, a credit score of 620 is needed, but borrowers with a 740 credit score or higher are likely to get a loan with a lower down payment and a more favorable interest rate. 

With conventional loans, a borrower should have a debt to income rate (DTI) that is below 36%. What this means is the total amount of your current monthly debts, such as car and rent payments, is divided by your monthly pre-tax income. 

A conventional mortgage requires a down payment of at least 3%, but borrowers with high DTI and/or lower credit scores are likely to need a larger down payment. 

The goal should be to save enough to put 20% down on a conventional mortgage. Anything less than the 20%, will require you to pay an extra private mortgage insurance, or PMI. 

Maximum amounts you can borrow could change, but at this time, loan limits for conventional loans are $548,280 in Florida and most US counties. 




Rupa Nunamaker

Coldwell Banker, St.Petersburg, FL


mobile phone: text or call 727-430-2350



Website: rupaweb.com