If you’re starting to look for a home, you may wonder what requirements you need to qualify for a conventional FL mortgage. Each lender has its own requirements, so there can be significant variation from lender to lender. There are some basic things that all lenders will require, though: income, good credit, and cash.

  • Income. Most borrowers will need to prove their incomes and assets with pay stubs, W-2 forms, bank statements, and job histories. If you’re self-employed, you’ll need at least two years of tax returns. The lender will look at your debt-to-income ratio (DTI), which is your total minimum monthly debt divided by your gross monthly income. The lender determines what ratio is acceptable, but it typically needs to be lower than 36 percent. That can change if you have a large cash reserve and a high credit score.
  • Credit score. In general, you’ll need a minimum FICO credit score of 620-680 to be approved for a loan. You’ll also need to have made all housing payments on time for at least 12 months. If you’ve had a bankruptcy, you’ll need to wait at least two years for a Chapter 13 bankruptcy or four years for a Chapter 7 bankruptcy. You’ll have to wait at least four years after a foreclosure. Borrowers with high credit scores (720+) will get the best interest rates.
  • Cash. Conventional loans will require you to put down at least 3% of the home’s sales price in cash for a down payment and closing costs. Down payment requirements could go as high as 20%, based on your lender’s policies and your credit score.

Find the Right Mortgage

Conventional mortgage requirements can be complicated, but we can help. At Embrace Home Loans, we’ll look at your individual situation and work with you to find a mortgage that meets your needs and gets you into your new home. Please browse our website, or call 407-733-6425 to find the best loan for you.


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