Conventional Conforming Loan
A conventional loan is a mortgage loan that's not backed by a government agency.
Conventional conforming loans follow lending rules set by the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac).
You can usually qualify for a Conventional conforming loan with a minimum of 620 credit
score, but please note conventional loans are credit score driven to determine your
interest rate.
To get a decent interest rate on a conventional conforming loan you want to aim for a
credit score of 680 or higher. You can still be approved for a conventional loan with a 620
credit score but your interest rate will be higher.
The higher your credit score is, the lower your interest rate will be. The lower your credit score the higher your interest rate will be on a conventional loan.
The minimum down payment for a conventional loan is 3% of the purchase price for a first time home buyer or 5% for non-first time home buyers/repeat buyers.